Thank you for selling me your shares. The arbitration is good news for SBUX stock as it gets uncertainty off the table. SBUX can afford the $2.7 billion as they are printing money now with the new revenue streams. They can borrow to cover it as their balance sheet is so strong. The only impact is they will stop their share repurchase program and they will not raise their dividend for a while to offset the borrowing, but otherwise it is business as usual -- and the smart money knows that. The little guy who saw the sky falling this morning just doesn't understand how the market works and so sold into the pre-market "fake-out." I still think we see 90 by year end and 100 by Spring 2014.
Thank you for giving me your shares. What idiot was selling yesterday when this company is easily going to 90 by end of year and is hitting on all cylinders? Coffee prices are at historic lows, the tea venture will increase revenue and profits, the yogurt will be out in a few months, and expansion in China has just begun. They have numerous areas of revenue expansion just starting. This stock will hit $100 before summer of '14 easily. I do not think we will see another dip like yesterday unless the market crashes and then we are all screwed. Any time this goes under $80, I will be buying with both hands. I think we hit $84-$85 next week, $90 by January 1st and $100 by April. Buy now or miss a 25 percent return by mid'14.
The problem with your analysis is there really is no competition for what SBUX does. DNKN is a joke, McD can't come close, so who is successfully competing against SBUX? Everyone is copying their business model, but none have suceeded yet. Look at market share and look at increasing profits. Competition is not a concern for SBUX. The growth will be astronomical and the company is stil undervalued. Forget PE, just look at what the company is doing to continue the growth trend.