Posts Tagged ‘Evolution Fresh’

Starbucks looks to tap into Asia’s and China’s Coffee Market!

Posted: February 7, 2012 in Coffee, Coffee Stocks, Cons. Non-Cyclical, Food, Long Term Growth, NASDAQ, PoulTrend Alert!, Restaurants, Services
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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.