SBUX purchases, roasts and sells high quality whole bean coffees, rich-brewed coffees, Italian-style beverages and a variety of pastries. For the 13 weeks ended 12/31/00, net sales increased 26% to $667.4M. Net income increased 41% to $49M. Revenues reflect the opening of new retail stores and higher comparable store sales due to an increased number of transactions. Net income also reflects a higher gross margin due to lower green coffee costs. SBUX purchases, roasts and sells high quality whole bean coffees, rich-brewed coffees, Italian-style beverages and a variety of pastries. For the 13 weeks ended 12/31/00, net sales increased 26% to $667.4M. Net income increased 41% to $49M. Revenues reflect the opening of new retail stores and higher comparable store sales due to an increased number of transactions. Net income also reflects a higher gross margin due to lower green coffee costs.

March 29, 2001

This ubiquitous coffee shop leader is starting to recover nicely after Mother Nature attacked its Seattle headquarters with an earthquake. The shares had been steadily dropping from the 52-week high of $51.31 for the past seven weeks. SBUX appears to have found nice double bottom support at $38.50 and could start trending higher. Now that a bottom has apparently been found, SBUX can now start its split run in earnest. The company announced a 2:1 split on March 20th and intends to make the split payable on April 27th. Another technical sign that a bottom has been reached is the fact that SBUX managed to trade back above its 200-DMA of $42.25. However, SBUX did drop back below this important moving average by the close. Still, the MACD appears to be on the verge of moving higher and may eventually trigger a buy signal. We also like the way the RSI is moving higher after signaling an oversold condition earlier this week. Therefore, new positions are suggested only if SBUX moves back above $42.25 tomorrow.

Picked on March 29th @ $41.94
Change since picked +0.00
Stop Loss $38.50

April 8, 2001

Starbucks never really percolated for us and actually went icy cold on Friday. The stock got swept up in the latest round of NASDAQ (COMPX) selling and our stop was executed at $38.50. This was despite the company posting good same store sales figures and despite the CEO reaffirming earnings for the year. SBUX started falling when it failed to stay above the 200-DMA of $42.41 early last week. Although the RSI is indicating an extremely oversold condition that could result in a bounce, we do not see SBUX making much progress until it can convincingly move above the 200-DMA.

Picked on March 29th @ $41.94
Profit/Loss -3.44 (8%) (Stopped Friday @ $38.50)
Best Profit +1.62 (4%)