$21.12
1.42 (+7.21%)
Starbucks Corp (SBUX)
CAPS Rating:
Purchases and roasts high-quality whole bean coffees and sells them, along with fresh, rich-brewed coffees, Italian-style espresso beverages, cold blended beverages, coffee-related accessories and equipment primarily through its operated retail stores.
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Starbucks, who was once a growth darling of the 90s, has reached that "cash cow" stage of life, but only problem is the cash has not been all that spectacular as of late. The real reason for this pick is two fold: 1.) I believe management and new CEO will improve operations store by store 2.) Starbucks has been working on and now has an instant coffee version of the real deal which could mean a major slice of a multi-billion dollar business.. Could this cash cow go darling again on us?
I believe that this will again grow really big. Just wait for the end of this year you will see double digit growth for this company and stock. These days, Starbucks is going through a phenomenal restructuring of both their store density and they are coming up with some new stuff to menu as well. Though I do not own this now, I am entering this by end of this Month.
By the way, if you are interested in some deals and coupons for anything from Starbucks to Starfish, you may find them on http://www.couponchooser.com.
Wishing Everyone Happy Days Ahead...
Couponchooser.com
"Cash cow"??? SBUX has a measly $0.40 per share in cash.
SBUX has less than $300M in cash but more than $775M in debt.
SBUX's revenue fell this past quarter and their margins are tight.
With a trailing PE around 50 and a forward PE around 20,
much of the stock price is dependent upon a favorable earnings report.
Investors may startle at the first whiff of trouble.