Opinion on  Starbucks Corp (SBUX)     Sector: Services  >  Industry: Restaurants
This stock will be junk in a year

With the upswing in inflation and the massive job losses that we are seeing, Starbucks is going to pay the price.  I've decided that I'm going to short them for the long run.  Just go to your local Starbucks and notice how few people are dropping in. 

Also, the upper management at Starbucks don't have a clue.  When they first came on the scene they were cool.  No people go because they remember when it was good.  With the rise of inflation, the incompetent management, and the general pullback on cash in the pocket of consumers Starbucks is going to take a big dump in its value.  Just wait until their next quarter results come out.  Trust me, it is going to be ugly.  Can you say, Taco Bell Management?

With increasing unemployment and rising inflation, not only did Starbucks overpay for their land leases, but they are also ran like a big pharma company.  This means more micro management and less productivity coupled with the public having less mad money to spend on a $5 cup of coffee.  It is going to be lights out for many locations soon and more to follow.  Still a wonderful time to sell this stinkbomb of a stock.

I would like to say officially that this stock is junk right now and still overpriced.  Think about how many times you read or hear people say, "I don't go to Starbucks anymore."  Our local Starbucks is down 40% and the pain of the economy is just beginning.  Christmas bought on credit cards this year isn't going to happen for many.  The credit card companies are already pulling back on credit in a big way.  The same knuckle heads that waste money at Starbucks on coffee they could make at home are the very same people that buy on credit and without their credit cards they will not be able to take a loan out for coffee.

I'm very optimistic that this company will have to change the business model to survive.