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Tuesday, 06/25/2013 8:52:32 PM

Tuesday, June 25, 2013 8:52:32 PM

Post# of 1160
Found This On Yahoo Board,,,,,,,,,,,,,
Any Comments ?????
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This $2.9 Billion Lawsuit Will really tank Starbucks Stock because
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Most people don't realize that unlike a shareholders lawsuit, a breach of contract and failure to performis not covered by insurance. I personally have been in 3 arbitrations and every one split the award just about down the middle (that's what arbitrators do) so Kraft should get around $1.5 Billion plus costs. That is more than the total net cash that Starbucks has, since they also have $550 million in debt. It means they will have to stop the dividend and all dividend and income funds will bail out immediately. Plus they will have to curtail some operations and sell some stores. The stock will be very bloodied. Don't be caught holding when it comes and despite what anyone says, they and the company have no idea when, since there can be no communication with arbitrator after the hearing (unless parties notify they want to settle before decision issued). My decisions all came earlier than expected and Starbuck's Hearing was over in August of 2012 - so it could come any day. One thing to remember is that Kraft has been through distribution disputes many times before, but for Starbucks this is its first. When the arbitrator looks back on case law which is how he makes his decision, he can't avoid looking at cases where Kraft has won the decision, because case law is full of them. This is why Kraft refused to settle when Starbucks offered $750 million - they know they are going to win because they've been here many times before. Don't be left regreting you could have left with a huge profit but now have a loss. Pigs get slaughtered
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