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Starbucks Corporation Message Board

  • hot_shot_barbie hot_shot_barbie Jul 26, 1998 4:35 AM Flag

    My two cents on current SBUX price.

    I've decided to override my plan to buy SBUX in
    mid-Aug, cough up the extra money and buy on Monday. Why?
    This whole thing is reminding me of IBM a few years
    ago. I sold in the late 80s at 175 when everyone was
    saying it would hit 200. 175 ended up being the high.
    The stock dropped. When it hit 40 everyone I knew was
    saying dump it, it's going to 20. I bought. 40 ended up
    being the low. IBM is now trading at 240 (ignoring the
    split last year). Everyone is saying buy. Well, I'm
    holding. Contrarian? You betcha.

    SBUX could go
    lower but it's trading at a reasonable price based on
    earnings projections. I see no reason to gamble that it
    will drop further and potentially miss a buying
    opportunity. Since I;m dollar cost averaging on this stock, I
    figure I can't lose.

    I know I can't please
    everyone but I hope this meets the relevancy criteria of
    most of you.

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    • I don't have any figures to back me up, but I
      don't think that if/when the recession hits, SBUX will
      be affected that much. I arrive at this conclusion
      based on a couple of things: 1) Caffeine is
      addicting....if you need good coffee (ie SBUX), you'll continue
      to buy regardless of the price. 2) It's a social
      thing too, and as someone else pointed out, it's a very
      cheap evening for first dates and old friends. 3) When
      movie ticket prices went skyrocketing, people said they
      wouldn't go to the movies. Still looks like the studios
      are bringing in the bucks, especially in the
      international markets. HMMM, just like SBUX reaching out to
      China, etc. 4) OK, so you don't want to pay the cost of
      a movie ticket, you can rent the video. Well, if
      you don't want to buy a latte in the shop, you can
      buy the beans from SBUX or your local grocery store
      and make yourself a cup at home. The SBUX shops I
      have visited in Los Angeles County and Ventura County
      are always nice, clean places with friendly folks at
      the counter!!!

      • 1 Reply to cateye36
      • Bought SBUX on Fri. and feeling pretty good about
        it. I've been watching the stock and was lucky to get
        in on the dip. My opinion, Starbucks is a well run
        company with no other Nat'l. competitor. Alot of local
        java joints, but I'd rather have Starbucks anyday. Our
        stores here in the Southeast are clean and well run,
        always a line. I know alot of people that buy their
        beans there as well as their daily coffee. I'm also
        seeing S.B. ice cream in the local grocery stores. Looks
        like they have alot of opportunities to start
        branching out into other retail ventures as well. Happy to
        be aboard.

        Oh, about that Latte, have you
        ever made one at home that tasted as good as the one
        handed to you over the counter?

57.290.00(0.00%)Aug 26 4:00 PMEDT