$SBUX is on my watchlist for Stock People Keep Calling Blue Chips That Are Actually Structurally Terrible, Possibly Forever
Previous inductees:
$INTC
$BA
$T
$VZ
$PFE
Actually want to take the time to dig into BROS at some point.
I
sold all of mine at a huge loss. Never again.
$SBUX is on my watchlist for Stock People Keep Calling Blue Chips That Are Actually Structurally Terrible, Possibly Forever
Previous inductees:
$INTC
$BA
$T
$VZ
$PFE
Actually want to take the time to dig into BROS at some point.
I sold all of mine at a huge loss. Never again.
You must have finally tasted their coffee.
Yeah, but the kids love their sugary energy crap. It's become the hangout spot here. Which intrigues me more than anything else
Yeah, that was my logic ever since the IPO but I took a bath on this thing and am glad to be done. Agree that addicting teens on $8 sugary, caffeinated drinks with low overhead is a cash cow but.......they are managed by imbeciles.
Do a little digging and you'll see what I mean.
I do have to ask how? I read a report sent to me by someone smart that outlined how a stock valued in the $30-$40 range was worth $60 in the next two years. It made sense so I bought and when the stock ran to over $60 in a month or two I sold because it hit the target had been achieved. When it cratered into the 20s the next year I bought and it ran into the 40s so I liquidated again. This stock is a golden goose.
I have never lost money trading SBUX.
Went back in at a 5 year low as I posted a week or so ago.....was called out at $109 after having a $53 cost basis.
It's really about when you get in and out with this one. I am extremly tactical with restaurant type stocks.
Remember BLMN? and Texas Roadhouse?
I also remember making a bundle in CAKE in the 2008 financial crisis.
I typically only trade these kind of consumer cyclical food establishment stocks.
I have made plenty of money long term in the likes of INTC (which we slashed from our master list some time ago) PFE (also off the list for a while) VZ (massive dividend compounding) and BA? We have made a bundle going in and out of that puppy.
It is really about the price timing of those stocks mentioned above....being patient and knowing when to either sell or sell covered calls and get out. Rinse and repeat.
I was in here saying BA was a buy at these levels.....I know in 2-3 years we will be quite happy with that trade again. We did the same thing in the pandemic with BA when it went under $100. That was an easy double.
BA is a mess right now.......no one wants it.
Screaming buy for a patient investor.
And the one I totally missed the boat on? Chipolte. Still beat myself up about that one. I was going to go in back when they had the food poisoning crisis. Oh well.
So yeah these kind of stocks to me are trades. anywhere from 6-12-18 month kinda holds (turnaround plays).