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Varchild2008 (84.20)

Starbucks is the next Skechers Strong Buy



February 13, 2010 – Comments (0) | RELATED TICKERS: SBUX

WARNING:  This Blog is TYPO and Accuracy Challenged and is not written by someone with an TM or F in front of their names... Nor am I some Professional Analyst... Think of me as just a MORON that simply talks about stocks......

With that said....  I am absolutely amazed so far this year at Starbucks....  The stores are absolutely RIDICULOUSLY packed..... here in MICHIGAN!!!!<--- land of the 14+% Unemployment.

Starbucks and Carribou Coffee located in Royal Oak Michigan seem to both get lots of traffic everytime I "channel check" the stores....  Of course, I prefer Carribou over Starbucks when I get a coffee....  But at the same time I probably spent more money on Starbucks Coffee this quarter than at any point in time in my entire life.

I just absolutely am benefited in having a starbucks place located exactly where I work....
If there was a Carribou where I worked then I'd go there instead... There isn't.... So my money goes to Starbucks...

In short...  I look at SBUX   Starbucks as a stock that you have to Blindfold yourself when it comes to P/E Ratios and 52-Week High/Lows.... You have to just GRIT YOUR TEETH......and Throw money at the stock at whatever share price it so happens to be trading at....

HOWEVER:  I am with JIM CRAMER in the WIDE BUY approach....  When opening a position I spend a tiny amount of cash....  then I wait a week or two to see if share price pulls back.... Then I pounce on the stock with twice as much cash as before....repeat...rinse...wash....when share price starts going up I simply kick back and watch the action.   

If share price gets way out of hand upward like crazy then I may sell some shares or all of my shares especially if I have been eyeballing something more undervalued.

So let's just arbitarilly throw up a share price.... and ask yourself... how unrealistic is it really for Starbucks to be:

$30.00   a share?????     <-----    That's about 6 pts you can get if it touches this...

Is that unrealistic???    Is it?????    I don't think so....  This stock's got room to grow and lots of excited shareholders are behind the company as they Channel Check and grow more excited and increase their share count holdings.... all in anticipation of some arbitary share price they think can be reached.

And you give me a stock with 5 pts or more of growth that seems realistic to expect and it is simply a STRONG BUY.

So... at a 22 handle.... need a stock to add to your portfolio.... Why not SBUX?

DISCLOSURE:  I own ZERO shares of SBUX and do not plan on adding it as I prefer the video gaming sector right now.

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