Starbucks: The Aroma Of Profit... But Will It Last?

Starbucks Corp. - Coffee Beans Smell Good and so are the Profits - But Serious Caution is Now Warranted

Starbucks is doing exactly what it should be doing - going up. But since the beginning of the year it has had an ominous Pull-Back that Warrants Caution. 

When my fundamental valuations are positive for a company, the technical charts always support this kind of price movement - hence my methodology of "Investing Wisely." Starbucks, like very company is vulnerable to Pull-Backs (check-out 2012 - - $61 to $42 that's about 33% and that is unacceptable asset management). As I did then, I am not again suggestion caution.

The current pull-back is ominous. $82 to $68.

My previously written articles on SBUX (just click) provide you the history of my forecasting, its accuracy and support for my performance. For over 50 years my management objective is to identify changing trends for my forecasting analytics.

Look at the Profits for SBUX - Over the Years

It is simple, all companies cycle from "Favorable" to "Unfavorable." In between, they are "Also Rans." This horse-racing metaphor is the best guidance I have to explain how to know the good, the bad and the Ugly for all securities.

Starbux - has: a) gone up in 20 years - - BUT - - (study the peak to peak and trough to trough); b) is up over 100% in favorable time-frames; is down over 50% in Unfavorable time-frames; and c) has spent years as an "also-ran." The company - has: a) gone Up in 20 years (study the peak to peak and trough to trough); b) is up over 100% in favorable time-frames; is down over 50% in unfavorable time-frames; and c) has spent years as an also-ran. What a waste of time and money during unfavorable and also-ran time frames - don't you think?

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