Schultz warned analysts to lower 1999 estimates, which has lead to a... 6 point drop! Hey, can somebody fire a rifle in the air grab the herd's attention?
Bottomline, to me, is that this stock is going to rebound back into the 50's in the next week as more people see this as a bargain price to get in on...
Specialty sales, which I assume includes Ice Cream and Frappaccinos was up something outrageous like 40%... That, my fellow investors, is a VERY good sign. Do you guys recall all the kvetching about spreading SBUX thin and getting too far from the basic business model? It appears that this is what is saving our butts right now.
I have been a SBUX investor since the price was 27 and never made as much money as with the puts I bought on 7/16/98 and sold this friday. Although I also believe this to be a great company with more future than McDonald's, I believe that yesterday's drop was only the first shoe. There will be a little rebound next week, but don't be fooled, a new high won't be reached any time soon. I don't know how low the price will go before going up, but it will be substantial. The second shoe should be of the same magnitude as the first. Namely 9-10 points.