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Thursday, 02/16/2012 10:15:32 AM

Thursday, February 16, 2012 10:15:32 AM

Post# of 45244
The difference to a new buyer between Starbucks Corporation (NASDAQ:SBUX), currently trading at $44.30, Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR), currently trading in the $50.49 range and BARISTAS COFFEE CO (PINK:BCCI), currently trading in the $0.13 range is obviously the price per share; so let’s stay with the small cap consideration that is most affordable for an investor looking to get into the coffee industry: BCCI.

Of course any play in coffee has to be based on commodity thinking: weather conditions, shipping costs, labor costs, consumer enthusiasm and the like, but share prices for the big companies have become ‘very expensive’ for individual investors.

But there are companies around that offer a reasonable “Entry Level” price and that’s what I found looking at BCCI. The stock is 13 cents a share…

Baristas Coffee, it may currently be said, is a small start-up based in Seattle, Washington; sound the like the beginning of the Starbucks story?

As the costumes have ‘toned down’ in time, like it did when Hooters was getting serious about attracting more and more customers, and the focus has shifted to the convenience of a drive through; BCCI today signed an agreement with DCB Management Group, L.L.C. to jointly develop five new Baristas Coffee Company locations in the Phoenix, Arizona metropolitan area.

Growing a retail concern through franchises certainly has its challenges, and there’s nothing wrong with a pretty girl serving coffee, but there’s a long list of companies that have learned that the ‘shiny object’ marketing approach doesn’t last long in revenue growth and as it matures as a coffee company, BCCI management would serve its shareholders well to remember ‘community standards’ and the reasons why McDonalds now sells millions of cups of coffee everyday: cheaper consumer prices than SBUX.