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Starbucks Corporation Message Board

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  • hilton_roberts hilton_roberts Jan 23, 2004 11:57 AM Flag


    I know they have a board and I check it a lot.

    I do not post a lot and the only reason for starting this on SBUX was my past history with the stock.

    My brother is pretty shrewd when it comes to money and his advice has always been to look at two major things before you put down your money. What is the upside to this stock? If you buy a stock....any stock say at $36 and the upside is figured around $40, there is no room, or very little for profit unless there is a dividend.

    If you could buy something like XLA....I bought a bunch of that for $3 and $4 and sold it for $215, then you are making your money on the "come." That does not happen often and that particular stock is tanked and pays no money at all.

    NSIT was another really good one, buy at $23-$28 and sell at $43 or so. But there again, they do not pay anything. If you have money in a stock at the high end of the trading range and no divvies, you do not have an investment at all. You are helping the company build it's business, you are taking the risk and getting nothing for it.

    Like I say, I have been long in SBUX before, but have not had any for a couple of years.

    I still look at it though..

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    • For stock that are trading near their all time high, without a dividend support are certainly at a grave risk if any terrorism takes hold far more than those with the return of 2%, 3%. I too took some profits on part of my January effect little guys and bought HU.....a bank stock ....a 3.4 or maybe 3.3% now, I'm up over a point already on that one.....the yield which is support....I deem as undervalued as to 16 X forward or current earnings...P/E 13ish...A takeout if it came, a good 10 or so points from $34...well now over $35. Hudson United in NJ. Don't bet it on just one hand. You have to have diversification and some under it to hold especially if you're climbing at the summit and you look...and where NOW.....IS there to go?? Don't let the oxygen run out on this one.

    • It's crazy to compare Novastar mortage loan company to Starbucks. You should compare that to a junk bond fund. It may be an excellent investment compared to a junk bond fund but you are comparing apples and oranges when you compare a mortgage reit to Starbucks. A mortgage reit is required by law to distribute 90% of it's earnings. Some mortgage reits even borrow money and pay out more than they earn which means you are simply getting your money back. This works great as long as rates fall.

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