Starbucks is a quality name and it terms of coffee you could say it’s the “Apple of coffee names”. In America, fat people love to turn their coffee into complete sugar bombs loaded with syrups and many other fattening things. Personally, I don’t drink coffee at all as it gives me a headache, but I won’t look down on any fat people who read this that do. In fact, keep drinking it as it seems you are helping the chart firm up a bit. Last quarter, SBUX went on a steep run into earnings making it very dangerous to hold when it seemed it was priced in for perfection. After the earnings announcement the stock sold off and we’ve been down ever since.
We all know how the strong dollar has greatly effected commodities as of late, but coffee prices have been coming down 2011. Lots of analysts said it was too early for those prices to give SBUX a lift but it could become a Q2/Q3 story and here we are! I’m looking to be a buyer of SBUX here with coffee prices continuing to go down and the technical side the chart is firming up here. It looks very similar to AAPL in terms of how it trendless and drifting in an range. The name also has huge growth potential as it expands all over the world in an endless quest to fatten up the rest of the world. I’m a buyer baby!