Starbucks (SBUX) not so hot
A few months back I stated Starbucks (SBUX) needs to beat expectation handily in order to justify their current valuation. The stock was then trading in the low 30's. Due to market optimism, SBUX has been battling its way back to the almost $40/share. My position remains the same in respect to SBUX stock, SBUX is overvalued and trading at premium. There is just too much expectation. Today, we saw the result of these high expectation; SBUX's number failed to impress Wall Street and the stock is down almost 6% in after-hour trading. Look to pick up this stock in the low 30's. My take it is SBUX is a $32 stock; that would be a great point of entry.
On a postive note, I noticed every Starbucks store I frequented while on vacation in Hawaii appears to be packed; so people are still in love with their cofee.
