Starbucks SBUX Message Board

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Pastimes : Starbucks SBUX

SBUX 83.97

-0.3%

3:59 PM EST

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To: Candle stick who wrote (108)	9/25/1996 2:09:00 PM
From: Murray Rudd	of 148

34 is hammered?? Hardly given the recent run-up from < 30. This just looks like a natural bit of profit-taking. I also don't see what influence the fed interest rate has on retail stocks like this anyway - shouldn't it be the case that if the economy is growing "too fast" (due to expanding employment and increasing wages rates for a large part) that retailers with hi-end products like SBUX would stand to benefit?? Re. the eroding margins & market share, I just don't see that happening in the near to intermediate-term. SBUX has very sharp marketing, excellent brand recognition - that won't be easy for other companies to compete with. Looking at the chart of SBUX from yesterday, I don't see anything to get alarmed about for now. The close was halfway between hi & lo so there was some buying later in the day and volume was relatively low. Also take a look at SBUX chart with 14-day %R filter (or some similar indicator) & it shows SBUX is now down into a bit of a dip where usually it's safe to buy within a longer term uptrend. Personally, I'm waiting a bit more to see if it holds support around this level or a bit lower just in case... Reactions of doom like this is what makes SBUX so tradable. I do agree that a PE of 80 does make it vulnerable but I just think it's way too early to jump ship or short it. Murray

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