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Caribou Coffee Company, Inc. (CBOU) Message Board

  • caladon2525 caladon2525 Jun 14, 2006 12:53 PM Flag

    Value

    I am not sure why everyone is comparing CBOU to SBUX and mentioning how many people they see in line at one store or another on the message boards. Seeing 12 people here or 5 people there is not going to have an impact on the stock nor provide any relevant information for investors.

    I do not believe CBOU will ever topple SBUX but I do think there is room for CBOU to garner a small portion of the market share. I also agree the IPO was not handled well. My question to you is at what price would this stock be attractive? Book value is about 1.50 per share so it is currently trading at 5x book which is not that bad. If this slips below 7$ a share I think it would be a good purchase at 4x book but I am interested in hearing other's opinions.

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    • Given that their Shariah advisor supports the palestinian terrorist group hamas.\

      Dr. Yusuf Abdullah Al-Qaradawi.

      This whackjob has issued a fatwa supporting the killing and kidnaping of US soldiers and civilians in Iraq:

      "all of the Americans in Iraq are combatants, there is no difference between civilians and soldiers, and one should fight them, since the American civilians came to Iraq in order to serve the occupation. The abduction and killing of Americans in Iraq is a [religious] obligation so as to cause them to leave Iraq immediately. The mutilation of corpses [however] is forbidden in Islam."

      http://www.memri.org/bin/articles.cgi?Page=subjects&Area=jihad&ID=SP79404#_edn1

      I would shop at WMT before I would get a single cup at CBOU. I was near NYC on Sept 11, and I personally saw the the smoke rising from the burning towers, across the hudson river

      Is this really what you want to support when you buy coffee?

    • "CBOU just needs to get their operations profitable. It can be done - other coffee chains have proven it."

      Name one chain that has directly competed with SBUX for the same market segment and lived to tell about it.

    • There is nothing bigoted over concern regarding the Middle Eastern ownership.

      Just smart investing in the modern world.

    • For example, if you were a manager would you introduce bacon/egg/cheese or ham/egg/cheese breakfast sandwiches like all the other competition?

      ---------------

      No, I would focus on operations. Making operations more efficient and consistent across the board. Seems like employees need a little more oversight and control. Close some low traffic stores. Do local marketing/promotion to get more people into the stores. Maybe make some tweaks to the menu, but no hot food.

      CBOU just needs to get their operations profitable. It can be done - other coffee chains have proven it.

    • Get that GED, quick!!!

    • ---
      I do not believe CBOU will ever topple SBUX but I do think there is room for CBOU to garner a small portion of the market share.
      ---

      Again, this is my biggest problem with CBOU.

      They seem content to simply be a "me too."

      Why would I want to own CBOU when I can own the market leader?

      Answer - short term profit. There's a chance that one could turn around a decent return in the short haul. But long term? CBOU has given me no reason to think they will ever be anything but a "me too."

      • 3 Replies to davechri
      • Again, this is my biggest problem with CBOU.

        They seem content to simply be a "me too."
        -------------------------

        I don't think they are any more of a "me too" than any other coffee chain is/would be. Or no more than Wendy's is to McDonalds.

        CBOU coffee is different than SBUX. In my opinion, CBOU coffee is generally not as strong and bold as SBUX, however it is stronger and tastier than your average fast food or gas station coffee. So, I think an opportunity exists for CBOU to have a niche in the coffee market (people who prefer their taste to SBUX). I am a big SBUX fan and I have often gone to CBOU instead of SBUX because I did not want the strong SBUX taste at the time. This along with CBOU selling coffee retail (providing sales and strengthening the brand) says to me that CBOU has a good chance of growing larger than its current $150M market cap.

        I am not in yet, but considering buying soon.

      • Why own Caribou when you can own the market leader? Did you say that when Google came out and was up against Yahoo? How about Dell versus the other large PC makers at the time.

        SBUX can only grow so fast now that they are big. CBOU can grow in leaps and bounds for quite a while.

        With many doubters on this board, it's a great time to buy in. When everyone is cheering the large run-up and the great gains, then it's a time to sell.

        Long term, this company will grow.

      • ----------------------
        Answer - short term profit. There's a chance that one could turn around a decent return in the short haul. But long term? CBOU has given me no reason to think they will ever be anything but a "me too."
        -----------------------

        Kind of like Pepsi, huh? -- oh, wait...they're bigger than Coke.

        Kidding.

        I think the problem here is management. It's like someone teleported them from 1998 and forgot to tell them that the capital markets don't always stay open to cash blank checks. If these guys don't focus on profitability instead of growth soon it's going to mean serious dilution via a PIPE, secondary or some wicked nasty convert to keep these guys afloat. I'm long, but have this puppy on a short leash.

    • Lot's of ifs....

      This IPO could fail, then what? You ready to hold through the reverse splits into penny status?

      This company is going to be needing cash very soon. Who is gonna put it up? At what rate?

      This is not a stock to buy for the savvy investor, or anyone with a heart condition.

 

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