10 reasons why you shouldn't buy Starbucks' (SBUX) stock

From TheStockMasters

Starbucks Corporation (SBUX) hit a new 52-week low today on May 15th. Big congratulations to management for the achievement and a wake-up call to all SBUX investors. Starbucks, which is trading well over 30 times earnings with weakening fundamentals continues to disappoint Wall Street. The company faces challenges like keeping up with its own lofty expansion goals, but its growth has been declining and now it falls from grace hitting around $28 a share. With such a historic moment in Starbucks history we had to honor the occasion with 10 reasons why you shouldn’t buy SBUX shares. So here they are, enjoy:

1. Profit jumped 18 percent in the quarter ended April 1, U.S. sales at stores open at least a year – a key metric – rose by just 3 percent, the slowest growth rate for so-called same-store sales since 2001.

2. How many more stores can they build and will people really keep going to them? Just drive to a Rest Stop off the freeway, the coffee is free!

3. McDonald’s Coffee (MCD)

4. Increasing milk costs will hurt them in the coming year.

5. Their quotations they put on their coffee cups seem to upset Christians every other day and make the news (just embrace Buddy Jesus, he loves Starbucks).

6. Because Todd Sullivan said so.

7. They are secretly trying to take over the world, just ask Dr. Evil

8. A P/E of 36 is just too high for a company that sells coffee.

9. Their coffee is fattening America, a Blackberry Green Tea Frappuccino® Blended Crème from Starbucks contains the same number of calories as a Big Mac from McDonald’s (560)

10. They sell coffee in the forbidden city. It’s forbidden for a reason Starbucks!

Hate mail is welcome Starbucks lovers, have fun with the stock.

Article written by:
The StockMaster Staff

Article posted on
May 15th, 2007

Disclaimer: None of the Stock Master staff owns shares, puts, calls, or any short or long interest in SBUX.

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