Posts Tagged ‘SBUX’

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.

Chimera Investment Corporation   – (CIM)

Best Buy Co., Inc.   -(BBY)

Lululemon Athletica inc – (LULU)

American Express Company  – (AXP)

Rosetta Stone Inc.  – (RST)

PetMed Express, Inc. – (PETS)

 

 

 

Image representing Apple as depicted in CrunchBase

Image via CrunchBase

There is no question about it these three giants are literally going to be head to head, at war with one another.  All 3 of these giants want there share of the Mobile Cell phone world, and the technology needed to stay at the top, being #1 in this sector is there ultimate goal.

As of this morning 8/17/2011

Apple (AAPL) and Starbucks (SBUX) announced that they will be hooking up with one another. Apple of which will be allowing Starbucks to have an APP on there mobile devices for free. Why is this important. Well back in 2007 it was estimated that 2/3rds of the WORLD drinks coffee.

Yes coffee is getting more expensive. Which may turn people off from wanting to go to a Starbucks, However Starbucks environmental structure is was makes them the leaders in this market. Starbucks offers a hot spot both for coffee drinkers and non. They offer free wi-fi, have point program, and the environment in these facilities is high class. Not to mention some are opened 24/7. (Plus, there has been talk of adding wine to the menu.) Now what can beat that. Why is this good for (APPL) well if Apple (AAPL) has an awesome app with Starbucks they will be able to not only promote Starbucks but it will keep the Starbucks lovers with the Apple Phones. Catch my drift.

Apple (AAPL) may also buy out SHARP! Would this be a good thing, of course. Why they want to make sure they keep up with the 3D technology for their Apple I phones, and IPADS. Will this go threw, probably not any time soon. If anything Apple (AAPL) should focus on buying out LG in doing this they would get the 3D technology for the Screens, and than own the LG MOBILE phones of which again would be keeping them in the Fight towards the top for the Mobile Phone explosion that we are heading into. LG as of 2010 had 116 million cell phone shipments, if they owned the rights of them they could totally take 35% or more of the market share and compete with the Android.
Microsoft (MSFT) is supposedly in the works of want to buy out Motorola Strictly for the patents. Will they get it, probably not, however their next move to stay a float in this world is to get on the band wagon of the Mobile internet world and as fast as possible. Everyone has already been saying it could be possible that the Cloud could kill Microsoft. Will this happen I highly doubt it, but it would not surprise me if you seem them make a move at Biadu.com some day down the road. Or make a move to try and hook up with Blackberry (RIM). Many say the Blackberry is over, however I tend to disagree, for a business worker Blackberry still has the best phones of which are directed towards the business person.

Below is a picture of the estimated Smart Phone Cell phones by 2015

Now 631 Million is obviously just a measurement. I estimate it will actually grow to 720 Million Plus! This being as if the Price of these Smart phones drops the more people will buy them. Since Google has now bought out Motorola (MMI) They may not have a problem offering the phone under 25$ or free on any network just because they can, and at the end of the day they still win as these phones obviously will be pre set to all Google’s works in the making like Google Plus, and their browser.

Now you can see Microsoft (MSFT) can still make some moves here and take 25% or more of the Market with a few upgrades. Meaning they need to buy out Blackberry (RIM) and than that 11.1% share could be there’s for the keeping.
Google (GOOG) right now is in the front when it comes to winning the war right now. With their purchase of Motorola (MMI) they have taken the first big hit at Apple (AAPL) and Microsoft (MSFT). I cannot wait to see what happens in the days ahead! This will be something epic to follow.

Disclosure- Currently I do not hold a positions in any of the companies mentioned above. Nor do I plan to initiate a position in the next 3 trading days.

Photo Disclosure – I do not own nor claim to own this photo I am using it as a reference to my blog. I recommend you look at the full article of which can be found at

http://mobithinking.com/mobile-marketing-tools/latest-mobile-stats

Starbucks Corporation (SBUX) – is a roaster and retailer of specialty coffee in more than 50 countries around the world. Starbucks purchases,roasts whole bean coffees, and sells them. Starbucks also sells a variety of handcrafted coffee and tea beverages, plus many fresh food items via their company stores. In October 2010, the Company acquired Magic Johnson Enterprise’s remaining 50% interest in Urban Coffee Opportunities.

Starbucks being one of the leading roaster of specialty coffee had wonderful third quarter results for the 2011 year. Earnings not only soared 33% year over year but had EPS at 36 which out beat most analysis.

(SBUXS)- Revenues and Margins

Total sales foe Q3 jumped 10.5% to $2,417.3 million in the quarter compared with $2,186.7 million in the prior-year quarter.

Adjusted operating margin for Q3 expanded 40 basis points (bps) to 13.7%.

Adjusted operating margin in the U.S. segment jumped to 18.8% from 16.7%.

On an international level Net Revenue surged 20% year over year to $658.5 million in Q3, reflecting a 5% growth in same-store sales.

Starbucks Looking Forward Predictions.

Starbucks raised its fiscal 2011 earnings guidance to the range of $1.50 to $1.51, from the previously communicated 15% to 20% growth over fiscal 2010 non-GAAP EPS on a comparable 52-week basis.

Starbucks has also unveiled a new three-region corporate structure to accelerate its growth strategy in China and Asia Pacific, including all Asia Pacific markets and China; Americas, including the United States, Canada, Mexico and Latin America; and EMEA, including Europe, U.K., Middle East, Russia and Africa.

Currently I have (SBUX)Starbucks at a HOLD HOLD HOLD Rating.

Disclosure – At this time I currently do not have any position in Starbucks nor do I plan on having any in the next 3 trading day.