SBUX has experienced significant correction and is establishing a bottom in the $15 area. Company is taking significant steps to reduce expenses, "cut the fat" and excess overhead, close non-producing locations, reduce administrative staff, etc. Although one should not expect the rapid growth the company experienced the last few years, there should be significant increase in earnings from both the "belt-tightening" and from new products and services that are being introduced. Company also stands to profit from the burst of the oil speculation bubble and the resulting drop in fuel prices. First significant resistance is back close to $30, although there is significant overhead supply. This should be a good long-term investment although the near-term could still have downside risk.
$15.02 (07/29/08)
