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Non-Tech : Starbucks (SBUX) -- Ignore unavailable to you. Want to Upgrade?

To: Daniel Chisholm who wrote (777)	7/3/1999 9:41:00 AM
From: SC	Respond to of 1506

Thanks making these numbers making more sense. <<This is Starbucks' magic. They sell moderate quantities (less than 10% per year) of very high priced stock. They've "created" far more shareholder value by selling stock than by selling coffee. In fact, their lifetime results as of 9/98 showed they had $589 million of value "created" though stock sales, compared to only $205 million created through coffee sales.>> Is this unique for Starbucks only? Is it uncommon for other similar growth companies to do the same? Also on their low ROE, does they coffee business make it necessarily so (for having lower profit margin as well)? Can they ever have significantly higher ROE, being closer to that of MDC? Is their new internet related strategy (regardless of the merit) an attempt of doing so?