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

Photo of Douglas A. McIntyre
By Douglas A. McIntyre Published

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.SBUX SUCKS 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.

Starbucks and Jesus5. 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
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.
Starbucks Sucks

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.

http://thestockmasters.com/index.asp

Photo of Douglas A. McIntyre
About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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