Dynamic Wealth Report
Subscribe to the Dynamic Wealth Report

SBUX Is The Best Growth Stock You Can Buy


The Dynamic Wealth Report
November 15, 2011

by Corey Williams, Editor

Investors are making a killing in Starbucks (SBUX).

It’s simply mindboggling that investing in coffee shops can be so profitable.

But the results don’t lie…

-------------Sponsor-------------
Where Can You Turn $300 Into $1.3 Million Right Now?

Our own small-company specialist, Robert Morris, has found a way to 'sniff out' tiny penny stocks on the verge of a major breakout.  And the timing for this has never been better.

You see, the system takes advantage of an obscure SEC regulation that sends penny stock prices through the roof.

We've seen some stocks gain 852%... 5,450%... even 17,496% in no time flat.

Click here for the details...
-----------------------------------

SBUX recently hit an all-time high of $44.70.  That’s an eye-popping 533% gain over the last three years!  An impressive feat for any company, let alone one big enough to be included in the S&P 500.

As you might imagine, Starbucks is outperforming the S&P by a wide margin.  This chart is worth a thousand words…

SBUX Chart

As you can see, the S&P 500 is up around 50% over the last three years. Not bad, but it’s no SBUX.  The coffee shop behemoth is up 10 times as much over the same time frame.

Clearly, SBUX has been a great growth stock over the last few years.

What’s behind the company’s amazing success?

It all boils down to one thing… execution.

Starbucks CEO, Howard Shultz, has a strategy to grow the business.  And he’s executing it to perfection.

The ability to execute a plan isn’t new to Shultz.  He’s been doing it for years.

He executed a plan to grow Starbucks by opening, what seemed like, two stores on every corner.  A plan that made their brand a household name…

Then Shultz shifted gears.  He took the Starbucks brand name and built a consumer products division.

This group sells the Starbucks brand in grocery stores and other retailers around the world.  And it’s paid off big time… growth in consumer products opened a whole new avenue of growth.  And it’s a big reason why the stock’s up more than 500% since November of 2008.

Now SBUX has a new plan… They’re moving into the juice business.

To jumpstart the business, SBUX is buying upscale juice maker Evolution Fresh for $30 million. It quickly gives them a foothold in the $2 billion premium juice industry in the US.

And here’s where it really gets exciting…

SBUX is planning to remake the juice business like they did the coffee business.

Remember, 40 years ago coffee was a commodity.  And a coffee shop was a coffee shop.  Then Starbucks reshaped the industry around the “Starbucks experience”.

Now, customers happily pay a premium for coffee.  And it’s not because Starbucks coffee is higher quality… it’s because of the brand name experience.

I think SBUX will remake the juice industry just like they did the coffee industry.

Why?

Because executing a growth strategy is what their CEO does best.

More importantly, SBUX is in great position to extend their dominance of the coffee industry to the multi-billion a year juice industry.  It’s a huge industry with the potential to fuel SBUX’s growth for the next decade.

Here’s the bottom line…

I’m usually not a fan of growth stocks acquiring a company to expand into a new line of business.  More often than not, it’s a sign that the rapid growth that’s fueled the stock’s rise is starting to slow.

But in Starbucks case, I think the acquisition of Evolution Fresh is a great fit.

Take a look at SBUX for your portfolio.  This is one hot growth stock whose best days could still be ahead.


Share This Story:


Print Page Print Page                                                 Bookmark DWR  Bookmark Us

Issue Date:
 Tuesday, November 15, 2011


Notable Highs and Lows

•  TJX (TJX) hit a 52-week high of $61.71.  Their market cap is now over $23 billion.

•  Sun Life Financial (SLF) hit a new 52-week low of $20.83.  They have a market cap of under $12.3 billion.

•  Humana (HUM) hit a 52-week high of $88.60.  Their market cap is now over $14.3 billion.


Quote of the Day

"Wall Street people learn nothing and forget everything."

                         -
Benjamin Graham


Special Offer

China Stock Insider


Top Global Markets

Country Gain
Venezuela 73%
Indonesia 2%
Philippines 2%
South Africa 0%
New Zealand 0%
*Performance from 1/1/11


Worst Global Markets


Country Loss
Egypt 39%
Austria 34%
Portugal 26%
Czech Republic 26%
Finland 26%
*Performance from 1/1/11


Recent Articles

A Different Way To Make Money In Penny Stocks
Monday, November 14, 2011

Is Oil Spiking To $150?
Friday, November 11, 2011

Is Another Market Wipeout Coming?
Thursday, November 10, 2011



Additional Resources

Invest In Penny Stocks!



Follow Us