Starbucks, trouble brewing. New movie explains all.
Hi Joe,
In the interest of full disclosure. I have to say that I really enjoy a cup of good coffee.
Truth be told, I was pretty well hooked on Starbucks. That's before I found out how many calories their frappuccinos contain, and when gas shot up to cost more than a cup of java. Well that did it for me with Starbucks.
There is no doubt about the quality of Starbucks products and operation. That has been reflected in the stock price for the past five years.
Now it is time for a reality check.
I have said this many times before, mystique and perception are worth more to a stocks value than earnings. This is what causes investors to bid a stock to ridiculous levels one month and push it down the next as they can't wait to get out at any price.
Once perception changes, mystique is lost, and investor interest wanes, stocks tend to fall under their own weight.
I believe this to be the case when it comes to Starbucks.
I have just finished a new 8 minute movie that outlines in detail the reasons why and the target zones I see for this stock in the future.
So grab a cup of coffee, put your feet up on the desk and enjoy the Starbucks reality movie.
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