Starbucks Corp. (NASDAQ: SBUX) is a stock which we get asked about constantly by our readers. Now that the price is at a certain point, we have finally been able to cover this stock in our weekly stock newsletter called "10 Stocks Under $10" which was sent to subscribers via email last night. Below is a partial synopsis:
We started pondering the value as two companies with NorthAmerica’s mature market as an earnings play and with the internationalside of the business. We still think that this could be a workinglong-term strategy.
But we have looked over the results, the market, and appliedeverything we can come up with on forward valuations and more.
Starbucks could see its shares go down to $7.50 before deep valueinvestors out there start to say, "Hey, this thing has gotten dirtcheap even with all of the problems out there."
If the market recovers handily, then we’d expect to see it trade up but maybe not as much as the broader market. Stay patient, as you’ll likely see this one get a tad lower.
Jon C. Ogg
November 17, 2008