CHESSNOID

Starbucks stock is down even though profits is up. I have to admit that is surprising to me. Where I live, there is a Starbucks on every block in supermarkets, bookstores, Target stores. I use to own the stock but sold when the previous stock market signaled me to sell everything. Here is what MSNBC states:

The world’s biggest coffee shop chain reported a 35 per cent rise in fourth-quarter earnings, with net income for the quarter of $158.5m, or 21 cents per share. Revenues increased 22 per cent to $2.4bn.

However, its US per store transactions fell by 1 per cent during the third quarter although the average transaction value increased by 5 per cent.

It cited weak consumer spending for its forecasts of 2008 earnings below many Wall Street estimates. It predicted comparable-store sales growth for 2008 of 3 per cent to 5 per cent, against its long-term targeted range of 3 to 7 per cent.

 

I personally think this stock is cheap again but I will wait and see how much more it will fall before I stock up on it. I have always liked Starbucks and still use their products. I buy it at the grocery store now.

Check out this girl who has enoyed 5 Starbucks frappuccinos here.  Just kidding, I don’t know how many she’s had. She sure knows how to groove.

Today, because of Starbuck’s statements along with Kohls and JCPenneys lowered outlook on the future earnings, the stock market retreated at the end of the session.