Archive for the ‘Food’ Category

Over the past year Starbucks Corporation (NASDAQ:SBUX) has made headline news in future plans for the company. Not only did the acquire Evolution Fresh, Inc. to tap into the fruit drinks, healthy shakes market but have most recently reported that they will be making there way into India by the end of August 2012. Starbucks, along with Asia’s largest publicly traded coffee grower, Tata Coffee Ltd, have plans to open close to 50 stores spreading Frappuccino aromas to the two largest cities in India Mumbai and India’s Capital city Delhi. There has been talk of the coffee outlets opening in shopping malls, office parks, universities, train stations, and even airports.

Most recently Starbucks Coffee Company has now made headlines of announcing an agreement to form a joint venture with Ai Ni Group. Ai Ni Group of which is China‘s most established coffee operators, and agricultural companies in the city of Yunnan. This joint venture will be controlled by Starbucks.

Currently Starbucks Corporation (NASDAQ:SBUX) – Has a 52 week moving average of $32.17  – $48.62. Since PoulTrend Alert back on 10/3/2011, Starbucks has climbed over 30%. Not only is Starbucks a dividend payer, it has a P/E of 29 Times Earnings which may suggest that investors feel there is great potential in the future outlook for Starbucks.

In a recent Blog Post by Scaeffer’s Research  BMO boosted its price target to $57 from $51.

Currently I Love this company however think there will be some time before we see Starbucks Corporation (NASDAQ:SBUX) trading up at or around $57.00 a share. Many have concerns on Starbucks and there expansion to other countries like India, and China. Not only is this market hard to please, but they are always looking for a bargain prices. There may be some time before Starbucks can pull in profits from the expansion to these countries, OR there could be the possibility that it just does not work out for them as they are expecting.

Currently I still have Starbucks Corporation (NASDAQ:SBUX) Rated a HOLD. I would recommend trying to wait, and see if you can get this stock at a better value as  over $45.00 a share is a little to pricey in my eyes.

Currently I do not own any Shares of Starbucks Corporation (NASDAQ:SBUX) and have no plans to make a position within the next 3 trading days.

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The Enmore stencil wall was 'sold' to the Coca...

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The Coca-Cola Company(KO)Coca Cola, a Stock that has always been known for its Great Dividend, Great Yield.

Today Coca Cola (KO) traded at a Low of $63.34 – $65.43.  KO ended up closing at $65.23, and in the Eyes of many investors this is around or close to a Bargain Price, However I beg to differ. KO of which is a company I do not see going anywhere, anytime soon. However I think over the coming years ahead this may be one stock of which will a gradual long term decline. Not because its financials are out line or anything like that. However I feel as more, and more baby boomers get closer to retirement they will be selling off their shares of Coca Cola of which will bring it down even as it continues to outperform.
Over the Past year, Coca Cola has traded at a High of $71.77, and a low of $58.55

Since 1986 – 1996 Coca Cola has split 4 separate times a 3 to 1 split, and 3- 2 to 1 splits. During this time, the Baby Bombers were in there peak times of their life where they may of had the extra cash lining around to invest into KO.

If a Baby Boomer owned just 1 share, by the end of these 4 splits they would have 24 Shares.

Split 1 – 1 Share * 3 = 3 Shares

Split 2- 4 Shares *2= 6 Shares

Split 3 – 8 Shares*2= 12

Split 4 -16 Shares*2= 24

During 1946-1964 the so called 19 years of the Baby Boom, there was close to 76 Million Births in the USA.

Lets Estimate that 15 Million of these Baby Boomers invested in Cola during that time, each buying just 10 Shares of Coca Cola.

During Split 1- they would have 30 Shares Each * 15 Million = 450 Million Shares.

During the Next 3 Splits lets Say 9 Million of these decided to sell all their investments in KO 5 Million Continued to hold there shares of 30 and 1 Million of them Buying 30 More after the First Split.

During Split 2 – 5 Million * 30 Original Shares = 150 Million Shares with a 2 for 1 Split, Making their shares increase to 60 for a total of 300 Million Shares. The 1 Million of who invested into buying 30 more shares before that split now held 60 Shares each = 60 Million * 2 for 1 Split = 120 Million Shares. Meaning Now 6 Million Baby Boomers owned 420 Million Shares which is Lower than the Previous 450 Million However lets continue on.
During Split 3 – Lets say those 5 Million held their Shares and Still hold 30 Shares Each, for a total of  150 Million Shares * 2 for 1 = 60 Shares Each times 5 Million = 300 Million Shares. The 200,000 of the Original 1 Million who double their stock after the initial Split now added 20 More shares. They now own 80 Shares Each * 200,000 * 2 for 1 = 16 Million Shares. The other 800,000 decided to buy 25 More Shares bring there grand total to 85 Shares * 2 for 1 split = 800,000 * 85 *2= 136 Million Shares. Meaning now that a total of 6 Million people own a total of

300 Million Shares + 16 Million Shares + 136 Million Shares grand total of 452 Million Shares.

During Split 4- Lets Say 2 Million sold off their shares and now only 3 Million held their shares of 60 * 2 for 1 split = 120 Shares * 3 Million = 360 Million Shares. The 200,000 of who have 80 decided to buy 20 more bring there total to 100 Shares * 2 for 1 Split = 200 Shares. 200,000*200 Shares each = 40 Million Shares, and Finally the 800,00 0f who had 85 Shares decided to buy 40 More shares bringing total to 125 Shares * 2 for 1 = 250 Shares each * 800,000 = 200 Million Shares . Meaning that Now these 4 Million people own a combined

360 Million Shares + 40 Million Shares + 200 Million Shares bringing their Grand total to 600 Million Shares. Out of the 2.3 Billion shares Available 1,439,688,448 of which are owned by institutional Investments, owners meaning now that

1,439,688,448 + 600,000,000 = 2.3 Billion Shares.

Obviously this is not a for sure, and these are all estimates, but what if there was out of those 4 Million Baby Boomers 1/3 or 1/2 decided to sell off  in a gradually during a 3 year span.

The Stock that has a 52 week low of $57.00 could see more levels close to $45.00-$50.00 range. Meaning why not wait for the storm to happen, and for KO to see Lower Lows!

Personally I believe many of the High Dividend, and High Yield Stocks will be on a Moderate Lower decline over the coming years ahead. I will wait for my Opportunity of  when to get in with KO, However I do not think that time is right now.

 

 

 

 

I recently blogged about Jazz Pharmaceuticals, Inc. on 8/25/2011, announcing that they were added to my PoulTrend Alert. The Stocks below should also be added to your radar!!

1.Jazz Pharmaceuticals, Inc. (JAZZ)
2.Kodiak Oil & Gas Corp. (KOG)
3.Rosetta Stone Inc. (RST)
4.Dycom Industries, Inc. (DY)
5.BRF Brasil Foods (BRFS)

 

Disclosure – Currently I do not own a position in any of the stocks mentioned above. I do plan to initiate a position within the next 72 hours.