Starbucks Buyout? Yet Another Case of 30% Today vs. 100% Over Time

Roger Nusbaum submits: Barron's had an article about Starbucks (SBUX) (longtime client and personal holding) that was generally positive. The article concluded with something vague about Coca Cola (KO) or Pepsi (PEP) buying Starbucks.

A few weeks ago I posted about Dow Chemical (DOW) (another holding) being an acquisition target. I noted that to my way of thinking 30% today was not as good as a few hundred percent over time. This is another example. I don't think KO or PEP can grow anywhere near as much SBUX will.

If SBUX does get bought out maybe I'll look at Caribou Coffee (CBOU)?

Comments

[Mahesh Reddy:]

only in your dreams...buddy...

2007 Mar 28 08:41 PM

[Roger Nusbaum:]

I don't understand this comment. I prefer it not be bought out.

2007 Mar 29 01:38 PM