Not long after changing their logo on their 40 anniversary, Starbucks made another announcement regarding the joint venture with Green Mountain yesterday. Starbucks shares move up almost 10% in a single day. This is not what I would like to share.
For the past 9 months, Starbucks has grown from around $26 in April 2010 to the current $37-$38. That's an increase of 37% in stock price. Starbucks has more room for growth and they are currently moving on the right track.
It was once a battered stock when the group made a wrong decision by expanding too fast in the China market and in the end, had to close down stores and retrenched workers.
Glad that the CEO has learned his lessons and he is much more focus on increasing shareholders' stock values by going into the single cup market.
If you search in MSN MONEY, you will be able to find that Starbucks will growth at a rate of 16% compounded for the next 5 years. So isn't this a good news to value investors?
Wait for a good opportunity to buy this stock. Remember, be greedy when people are fearful.
Disclosure: Blogger owns shares of Starbucks.