Seeking Alpha

PhillyD » Comments » SBUX

  • Raw Data Report: Fast Food [View article]
    I'm surprised that SBUX drip coffee is actually declining. Hmmm ... that's the first I've heard of that. I would have thought the exact opposite ... maybe that's why they're recently reinstated their flavorings.

    I'm looking for any reason to invest in this company in a big way. I only find one reason to put my money there ... overseas store openings. Is that enough reason to do it? If they could even come half way to the success they had in penetrating the U.S. then this stock is a bargin since they would be one of the true growth prospects for brand growth in the food industry. Figure Coke and McDonalds cannot grow as fast as Starbucks due to Starbucks relatively lack of overseas penetration compared to the other two. But can they pull it off?

    If the answer is yes then this may be one of the best growth plays of the next 10-20 years. It could still be another 10 bagger from here (at least a 5 bagger.) However, if they can't then you will lose 10-50% of your money in the next 10 years. Which is it? Is the gamble worth it? 50% reduction (tops) vs. 1,000% gain. Here I go again ... talking myself into a 25K chunk.
    Jul 01 09:50 am |Rating: 0 0 |Link to Comment
  • Peltz's Stake in Starbucks is Good News for Shareholders [View article]
    Todd must have been reading my suggestion on their website! :)

    They need to Franchise for multiple reasons:

    1- increased cash flow immediately
    2- lower the cost of expansion thereby expanding in South America and China can happen IMMEDIATELY. If they don't ... someone else will.
    3- get a more dedicated staff towards promoting and implementing the "experience" ... whatever that morphs into being. I went to a local deli-coffe house in Ann Arbor today. It was an experience! That's what having ownership on hand does for you. I am SHOCKED that Starbucks doesn't get it.

    They resisted my offers for multiple franchises in NY/NJ some 10 years ago. Very prideful and cocksure. Now not so prideful as their stock (and net worth) has tanked.

    I would love to invest a boatload here at this price but am not confident in their management.
    Jun 10 03:53 am |Rating: 0 0 |Link to Comment
More on SBUX by PhillyD
Comments by Ticker
PhillyD's
Comments Stats
33 comments
Rating: -1 (1 is - 2 )