June 23, 2007
Stock Du Jour (SBUX) & Random Observations
Selling from the get-go, a nice directional day where traders had a fine tailwind to help them out.
Notable New Lows: A ton of regional banks and other financials: throw a dart; Homebuilders Meritage (MTH), Hovnanian (HOV), and Pulte (PHM); and long-suffering Starbucks (SBUX).
Notable New Highs: Sunpower (SPWR), First Solar (FSLR), and a ton of Oil Services stocks led by Schlumberger (SLB).
Here’s a quarterly chart of Starbucks for a long-term perspective … has the world run out of fools who pay $3 for a $0.30 cup of coffee? (I think not.)
Cat: | Time: 8:50 am (utc+8)
June 23rd, 2007 at 1:55 pm
Hey I’m one of those fools…
Cmon you must have some silly vices Chairman ;)
June 23rd, 2007 at 2:57 pm
Andrew: The only vices I have left are buttered popcorn, Cuban cigars, and girls half my age (who frequently order Caramel Macchiatos, at my expense). ;-)
June 23rd, 2007 at 10:39 pm
Starbucks is still the Brand to have if you’re walking into the office with your morning mocha cappuccino. Caffeine is a wonderful drug that gives you a kick and can get you addictive for repeat sales. Starbucks’ margins are great. They buy the same coffee bean that everyone else does. I think that you local gas station has machines that can make your vanilla cappuccino just the same, if not better. Of course, people say that Dunk N Donuts has the best coffee but it’s all the same, just where you want to go and how much you want to pay to get your morning fuel.
June 24th, 2007 at 12:04 am
KC: I’ve always thought McDonald’s has excellent coffee though I’m not a big coffee drinker at any time of day. What some people think gives them status (carrying a SBUX cup around, the Pony on the shirt) I think marks them as a sucker, but I’m probably in the minority.
June 24th, 2007 at 12:24 am
I am an avid coffee drinker and have found Starbucks to have the most kick of them all. I rarely buy it from the store though because the lines are usually too long.
June 24th, 2007 at 12:51 am
Just spent a week in SF high-end financial co which had a Starbux coffee making machine, 4 feet tall, in the ‘break room’ - one button for size, one for mix: regular, decaf, etc., one for start. The beans fell down, were instantly ground for you, a fresh filter rolled out over your cup and bingo: Fresh Starbux without leaving your office. First time I saw this. The only low tech part was the filter that fed into a garbage bag below (not cleaned by the high end financial types, I assure you.)
June 24th, 2007 at 5:40 am
Eyal,
I read on your blog you might ditch the job and go to day trading. How’s the transition?
CM: are you a full time trader?
June 24th, 2007 at 9:15 am
bbc: I’ve never seen a Starbucks machine either, but I remember one office I visited had a Green Mountain (?) machine that was pretty slick. As a treehugger I objected to the coffee being dispensed in these individually wrapped foil packets (if memory serves) … seemed very un-green of them.
June 25th, 2007 at 10:49 am
I check the 10-Q of sbux for and there is not much negative number of this stock. The revenue /profit grow with a solid pace and the new stores open all around the world. The only thing I can use as the short is that SBUX concern the up price of diary and the new store opening will slow in the near future. From fundamental , it’s till a good pic. But for moment ,it’s down hard . Technically, sbux can get some support around 22-24. 40*0.618= 24.72 , 40*0.5=20 .
June 25th, 2007 at 10:57 am
Wang: Remember the market is forward looking… the numbers in the 10-Q were discounted long ago. In any event, every time I walk through Guomao in Beijing, the SBUX there is packed, not an empty seat day or night — a gold mine.
June 26th, 2007 at 12:20 am
but guomao is not all.
The outlet near Dawanglu is never crowded and the branch in xidan always has a free seat too.
June 26th, 2007 at 7:04 am
max: True, and the one in Fortune Plaza is not that busy either but they’re going head to head with Pacific Coffee there … but think how many money-losing locations can be supported by a single Guomao or Oriental Plaza bonanza location?
June 26th, 2007 at 7:10 am
…and for the four foot tall automated Starbucks machine, it costs the office $0.60 per cup for the guys to press these buttons. I bet they keep this machine anyhow.
June 26th, 2007 at 7:17 am
bbc: It’s worth it if you’re keeping the bees inside the hive … you should see the variety of “goodies” Bloomberg stocks in their offices.