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…
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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…

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.
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