Some more thoughts on sbux. Too much negativity in this stock. It may have 2 or 3 more points of downside and I hope they do because then I'll add more. It's a solid yuppie brand and has lots more room to grow. There's enough yuppies to support a store (or 5) in every town from here to Timbuktu + don't forget all the boomer moms all over the world who love their sbux coffee. + China. Anything under 25 (if it falls there) is a total steal imo.
FY08 est is $1.08. 25p/e = $27. Good enough here for me. 22 p/e (Next 5 years est. growth rate is 22%) = $23.76, which would be a steal.
Just read this. Umm no. Nobody that goes to sbux wants some cheap clutter. put down the thinkin' pipe. lol.
Another beat up yuppie brand is Whole Foods and I wouldn't touch that here. 30 and under it becomes interesting. WFMI has been overpriced for at least two years and I wouldn't pay more than 20x next years est. earnings for it. Sure the stores have a cool atmosphere but its product is not exclusive. Safeway and others have been remodeling their stores to copy the WFMI model. + Paying $5 for a cup of coffee is one thing but paying $15 for some organic chicken that's $10 more than what you get at your local grocer is another. Nobody sees you eating that chicken and that's more important for these guys than the actual product.
Saturday, June 9, 2007
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