Starbucks – Shares at 5 month low but still a sell down to $35

Nasdaq darling Starbucks (SBUX) saw its stock price tank on Friday to a new 5 month low of $47.47 after warning that it would miss full year earnings forecasts. This is not a bad company but I fear its problems are just beginning and as such the shares are still a sell. Short Starbucks – target share price $35 (for starters).

I guess you all know what Starbucks does. It sells pretty bland, milk-filled coffees and a range of other products that do nothing for my diabetes on a grotesque gross margin. It is a brand that does not need to promote itself, we all know Starbucks. Some folks hate it as a symbol of big corporate America. Others love it while most of us treat it with a vague indifference. If I want caffeine I really do not care who serves it up.

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