Starbucks Corp (SBUX)

Boatonthebeach (97.17) Submitted: 8/28/06 5:28 AM : Start Price: $29.83 SBUX Score: -35.71

I rarely see a SBUX location without a line. It reminds me a a quote I heard before, something about.... Nobody comes here any longer... It's just too crowded.
I think SBUX will become even more of a global brand, but also, more importantly, I have noticed the ages of people hanging out at many locations. They seem to be younger, and younger, and although that may be also related to the fact that I'm getting older and older, I think it shows that many teenagers are frequenting these locations. I think as a group, this brand will stay with them many years.

I'm holding SBUX shares for the future dividend that I believe they will pay in a few years. They are basically printing cash now, and spending that cash on expanding operations. What are they going to spend it on the day they quit, or slow expanding. I think that will grow EPS, and in turn grow the stock price. I think they eventually will pay a dividend, although I believe that is low on their priority RIGHT NOW. I think a price below $ 30 / share is a great price. You could buy now, and check back in a few years.

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