Seeking Alpha

Are restaurant stocks the next retail domino to fall?

Comments (6)
  • Ross Healy, CFA
    , contributor
    Comments (53) | Send Message
     
    The "problem" with SBUX is not that it is not agreat company, but it has a valuation in price-to-book terms that is at the extreme high end for similar companies. So you are paying well up for its future, however bright one might like to think it will be. This is not investing: it is speculating.
    7 Aug 2013, 02:56 PM Reply Like
  • jackooo
    , contributor
    Comments (1525) | Send Message
     
    I find it hard to believe that you do not think SBUX is a great company.
    I never go by metrics established by analysts. If they knew anything they would be on their own island in the sun and not trudging to work through traffic five days a week to make a living. The charts and p/e etc. are all 1 minute old or older. Each minute is a different ball game.
    7 Aug 2013, 03:16 PM Reply Like
  • Michael Bryant
    , contributor
    Comments (5619) | Send Message
     
    "The "problem" with SBUX is not that it is not agreat company, but it has a valuation in price-to-book terms that is at the extreme high end for similar companies. So you are paying well up for its future, however bright one might like to think it will be. This is not investing: it is speculating."

     

    Same with (TSLA). PE of 440. That's speculating.
    7 Aug 2013, 11:35 PM Reply Like
  • Michael Bryant
    , contributor
    Comments (5619) | Send Message
     
    Remember, the market is not rational. Look at (AMZN). Can you explain its valuation?
    7 Aug 2013, 11:37 PM Reply Like
  • civ-e
    , contributor
    Comments (343) | Send Message
     
    curious, what "similar" companies would you be comparing SBUX to?
    8 Aug 2013, 07:47 PM Reply Like
  • Jack110
    , contributor
    Comments (2) | Send Message
     
    What short wrote this opinion? It if full of undeveloped generalities and no one had the courage to put their name on it.
    7 Aug 2013, 10:10 PM Reply Like
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