This was supposed to occur by the end of July. Still no word ? Kraft rejected a 750 million settlement from SBUX and claimed that SBUX had a proven damage of 2.9 BILION . This is big news and the stock rose $10 in the last 3 weeks or so. Does this make sense ? I am not short but I really would like to buy on a pull back. Operating they look fine but they do not have that much cash that this will not effect eps.One time or not. Opinions ?
Worst case scenario, SBUX is liable for $2.9 bilion. They could use partial cash and assume debt for the rest. A $3 billion hit represents 5% of the market cap. That's the downside risk. You wake up one day and the stock is down 5%.