I posted yesterday, but it sort of "disappeared", kind of weird. Maybe I gave too much information. I know it's not much fun to watch the stock price get hammered, but maybe this is the price we will have to pay to position the company to maximize it's future potential. I think a lot of the people are correct when they say that HS has been spending a lot of time on the internet strategy. I disagree that it is a waste of time and energy. only time will tell. The shorts (Boy, have they come out of the woodwork again!) have lot's of ammo and are using it to blast all of us longs. Let them have their moment in the sunshine. The internet strategy is a good one. As a "canopy" company, the portal site will be a money maker. When transactions occur, SBUX makes $$$$. Advertisements will make SBUX $$$. The cost for this new site is $4-5mil, and it will be paid for out of this years profits. That is the main reason for the shortfall. That is this year, next year hopefully, the costs will revert to income...much better. The growth factor will be much larger when compared to this years .54 .The new company will also hold stakes in emerging internet company's, ie Oxygen Media and TalkCity. Guess who makes $$$ when they go public? The real killer here is that there will be a new company. We as shareholders will receive a share in the new company for each share of sbux common we own. The books and management will not affect the earnings and growth streams of the coffee company..except add to profits. This is not really insider news. HS aluded to this during his conference call the other day.
Just take a look at what the AOL's, ATT's and CMGI's are paying for additional content. I think $5 mill (.06 cents a share) is pretty darn cheap. Let's wait and see whom our "partner" will be next month. I don't know who it is, but have been told it will be "a killer". JMHO
I'm thankful for the dead cat bounce today! I'm out at 28. This company is going through what is know as "deworsification"--getting into a sideline which it is not best suited: internet. The core business being forgotten is the coffee and coffee-related products, not fancy internet sites. Best of luck to you all!