|
|
|
starbucks (along with Walgreen's, CVS, Wal-Mart, Home Depot, Lowes...to name a few) has had an aggressive expansion plan for years and frankly many of the locations they paid out the yang for and probably don't do enough volume to justify keeping them open if they operate at a loss. also, there is the now voque idea that perhaps $4 for a nonalchoholic beverage is a bit over the top.
there are going to be more headlines like this as companies shift from excessive growth to making money again. not a bad thing but if you own a stock who's value is based on them continuing to grow gangbusters you are gonna lose your azz as the price will plummet accordingly. however, the market is good at hammering stocks well before the word gets on the street that they a stock isn't growing fast enough as that's news no CEO who wants to keep his or her job wants to confirm or deny.
basically, if you own a stock with a price/earnings ratio in excess of 15 - 18 times, you better hold on. and, don't believe the hype that folks can still open up stores at breakneck speed in this economy and it be profitable.
retail is in the toilet. |
|
|
gonna see more of this New 
BoaterTalk 
