Posts Tagged ‘coffee’

Shares Of Starbucks Slide, After Company Warns That Commodity Inflation Will Whack Earnings

Courtesy of Joe Weisenthal, Business Insider 

Starbucks logo

Image: Starbucks.com

A strong quarter from Starbucks is marred by this jolt of reality

  • The company now expects EPS of $1.43 to $1.47, reflecting 15% to 20% growth over fiscal 2010 non-GAAP EPS on a 52-week basis. No restructuring charges are anticipated in fiscal 2011.
  • The company also expects EPS for fiscal Q2 and Q3 to be in the range of $0.32 to $0.33 in each period, and EPS in fiscal Q4 is expected to be approximately $0.35.
  • Commodity costs, which are now expected to have an unfavorable impact on EPS of approximately $0.20 for the full fiscal year attributable primarily to higher coffee costs, are reflected in the revised EPS target.

Current estimates had been at $1.49. The stock is off about 2% after hours.


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HOWARD SCHUULTZ EXPLAINS HOW QE IS HURTING STARBUCKS

HOWARD SCHUULTZ EXPLAINS HOW QE IS HURTING STARBUCKS

Courtesy of The Pragmatic Capitalist 

Great commentary right now on CNBC by Starbucks CEO Howard Schultz.  He succinctly summarizes what QE is doing.  Coffee prices have risen almost 50% since QE2 rumors first began in August.  Schultz says the price rise is hurting his business and that he will not be passing the costs along to the consumer.  He says the only people benefiting from this price rise are the commodity speculators because the consumer remains too weak to accept the price rise.

So what do we have?  It’s quite literally a ponzi scheme.  We have a Fed that has openly admitted that they want prices “higher than they otherwise should be”.  And speculators are taking them up on their offer by borrowing in dollars and buying any and all inflation hedges.  Meanwhile, the real economic benefit of this all is nil.  In fact, it is doing nothing but generating margin compression, excess volatility in financial markets and promoting the financialization of this country – the same thing that nearly destroyed it just two years ago.

Updated: 


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DARK HORSE HEDGE – One More Cup of Coffee Before You Go, GMCR

DARK HORSE HEDGE – One More Cup of Coffee Before You Go, GMCR

Cup of espresso and cookie

By Scott Brown at Sabrient, and Ilene at Phil’s Stock World

Your sister sees the future
Like your momma and yourself
You’ve never learned to read or write
There’s no books upon your shelf

And your pleasure knows no limits
Your voice is like a meadowlark
But your heart is like an ocean
Mysterious and dark

One more cup of coffee for the road
One more cup of coffee ‘fore I go
To the valley below – Bob Dylan

Green Mountain Coffee Roasters (GMCR) doesn’t at first glance seem like the type of company that would need to be “mysterious and dark” but when “pleasure knows no limits” it can down into a metaphorical valley.  How does GMCR, engaged in the specialty coffee and coffee maker businesses, churning out quarterly profits that meet analyst expectations while growing at 61% per year over the past five years, and expected to grow another 35% over the next five years, end up at #18 on the Sabrient VCU short ranking? 

The fact that Michelle Stacy, President of Keurig (patented single cup brewing technology for GMCR), exercised 30,000 options at $6.20 on August 13, 2010 and  simultaneously sold the shares on the open market at $30.95 for gross proceeds of $928,500, again exercised 5,000 options at $6.20 on September 13, 2010 and simultaneously sold the shares on the open market at $35.40 for gross proceeds of $177,000 and a week later exercised another 5,000 shares from $6.20-$9.14 and simultaneously sold the shares on the open market at $37 for gross proceeds of $185,000 alone isn’t enough to raise any eyebrows or red flags.

There are many reasons that insiders may sell shares which have nothing to do with their perception of the company’s prospects or valuation.   However, when a week after the last insider sale the company discloses that the SEC is inquiring into the company’s methods for accounting for revenues, it starts to look a bit more dark and mysterious.   It is worth noting that Keurig accounted for over half of GMCR revenue last year, so when the President of Keurig is selling, it is worth a further look.  When the SEC discloses an inquiry into the companies accounting it is…
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DARK HORSE HEDGE – One More Cup of Coffee Before You Go, GMCR

Reminder: Sabrient is available to chat with Members, comments are found below each post.

DARK HORSE HEDGE – One More Cup of Coffee Before You Go, GMCR

 

By Scott Brown at Sabrient, and Ilene at Phil’s Stock World

Your sister sees the future
Like your momma and yourself
You’ve never learned to read or write
There’s no books upon your shelf

And your pleasure knows no limits
Your voice is like a meadowlark
But your heart is like an ocean
Mysterious and dark

One more cup of coffee for the road
One more cup of coffee ‘fore I go
To the valley below – Bob Dylan

Green Mountain Coffee Roasters (GMCR) doesn’t at first glance seem like the type of company that would need to be “mysterious and dark” but when “pleasure knows no limits” it can down into a metaphorical valley.  How does GMCR, engaged in the specialty coffee and coffee maker businesses, churning out quarterly profits that meet analyst expectations while growing at 61% per year over the past five years, and expected to grow another 35% over the next five years, end up at #18 on the Sabrient VCU short ranking? 

The fact that Michelle Stacy, President of Keurig (patented single cup brewing technology for GMCR), exercised 30,000 options at $6.20 on August 13, 2010 and  simultaneously sold the shares on the open market at $30.95 for gross proceeds of $928,500, again exercised 5,000 options at $6.20 on September 13, 2010 and simultaneously sold the shares on the open market at $35.40 for gross proceeds of $177,000 and a week later exercised another 5,000 shares from $6.20-$9.14 and simultaneously sold the shares on the open market at $37 for gross proceeds of $185,000 alone isn’t enough to raise any eyebrows or red flags.

There are many reasons that insiders may sell shares which have nothing to do with their perception of the company's prospects or valuation.   However, when a week after the last insider sale the company discloses that the SEC is inquiring into the company's methods for accounting for revenues, it starts to look a bit more dark and mysterious.   It is worth…
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TLP: What It Really Means When You Spend $4 On A Latte

TLP: What It Really Means When You Spend $4 On A Latte

Courtesy of Jr. Deputy Accountant 

economic indicators

Unemployment numbers, capital investment figures and housing starts may mean something about where the economy is headed. But those are f^*king boring statistics. Instead, check the length of the line at Starbucks.

WSJ:

As economists look for clues on the direction of consumer spending, they may want to look into how much Americans are willing to spend on their coffee.

Consumers have been more willing to spend since the lows of the recession, but recent declines in retail sales and confidence have sparked worries over whether spending can continue to grow in the second half of the year.

Enter the coffee indicator. A “tell-tale sign of how consumers feel about employment, income and the future is where they buy their coffee and whether they step up for the more expensive concoction,” wrote Majestic Research economist Steve Blitz in a recent research note.

Majestic Research tracks anonymous credit-card data, and can see how much consumers spend by category and store. Blitz broke out the average dollar transactions at Starbucks and Dunkin’ Donuts. The data show that during the worst of the recession consumers spent less at the two coffee outlets, but as the employment picture started to improve people were willing to spend more per transaction.

Or maybe people are so depressed by the way things are in this economy that the last thing they want first thing in the morning is a sh*^ty cup of coffee. 

 


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Tea, Coffee Drinkers Have Lower Heart Risk

Good news, coffee and tea drinkers. Keep drinking--6 cups of tea or 4 cups of coffee. – Ilene 

Tea, Coffee Drinkers Have Lower Heart Risk

Black coffee in ornate coffee cup

Study Shows 3 to 6 Cups of Tea Daily Linked Reduced Risk of Death From Heart Disease 

By Salynn Boyles
WebMD Health News

June 18, 2010 — People who drink a lot of tea or drink coffee in moderation are less likely to die of heart disease than coffee and tea abstainers, new research suggests.

The finding adds to the growing body of evidence suggesting that coffee and tea help protect against heart disease, but not stroke.

Researchers followed more than 37,000 people in The Netherlands for 13 years in one of the largest and longest studies ever to examine the impact of coffee and tea drinking on heart health.

They found that:

  • People who drank three to six cups of tea per day had a 45% lower risk of death from heart disease than people who drank less than one cup of tea a day.
  • Drinking more than six cups of tea a day was associated with a 36% lower risk of heart disease, compared to drinking less than one cup.
  • People who drank more than two, but no more than four, cups of coffee a day had about a 20% lower risk of heart disease than people who drank more or less coffee or no coffee at all.
  • Moderate coffee consumption was associated with a slight, but not statistically significant, reduction in death from heart disease, but neither coffee nor tea affected stroke risk.

Continue here.>

See Also:

Tea and coffee reduce heart disease risk, study suggests

By Richard Alleyne, Telegraph 

The researchers believe that the health benefits are down to antioxidants found in both drinks which remove damaging free radicals from the body.

The team, whose research is published in Arteriosclerosis, Thrombosis, and Vascular Biology: Journal of the American Heart Association, also noted that tea and coffee drinkers have different health behaviours – with more coffee drinkers prone to smoke and have a less healthy diet.

This is the latest research into the relative health benefits of two of the world’s favourite beverages.

It has been claimed that they can reduce risks of some cancers, diabetes, stress and even acne.

But they have also been linked to increased rates of cancer, rheumatoid arthritis and high blood pressure.

Full article here.>


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Phil's Favorites

Partisan divide creates different Americas, separate lives

 

Partisan divide creates different Americas, separate lives

Even in the physical world, it’s hard to cross partisan lines. igorstevanovic/Shutterstock.com

Courtesy of Robert B. Talisse, Vanderbilt University

When people try to explain why the United States is so politically polarized now, they frequently refer to the concept of &ldq...



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Kimble Charting Solutions

India About To Experience Major Strength? Possible Says Joe Friday

Courtesy of Chris Kimble

If one invested in the India ETF (INDA) back in January of 2012, your total 7-year return would be 24%. During the same time frame, the S&P 500 made 124%. The 7-year spread between the two is a large 100%!

Are things about to improve for the INDA ETF and could it be time for the relative weakness to change? Possible!

This chart looks at the INDA/SPX ratio since early 2012. The ratio continues to be in a major downtrend.

The ratio hit a 7-year low a few months ago and this week it kissed those lows again at (1). The ratio near weeks end is attempting to...



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Zero Hedge

Blain: "It's A Bad Week For The Credibility Of Mohammed bin Salman"

Courtesy of ZeroHedge View original post here.

Blain's Morning Porrdige, submitted by Bill Blain of Shard Capital

Saudi….

Its turning into a bad week for the credibility of Mohammed bin Salman, the defacto ruler of Saudi.  After the Globe’s third largest defence spending state was crippled by supposedly unsophisticated Houthi rebels (with some likely assistance from Iran) when they struck his oil infrastructure, this morning the headlines are all about how MBS is now arm-twisting rich Saudi’s to buy into the discredited Aramco IPO. 

In...



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The Technical Traders

Precious Metals Setting Up Another Momentum Base/Bottom

Courtesy of Technical Traders

Just as we predicted, precious metals are setting up another extended momentum base/bottom that appears to be aligning
with our prediction of an early October 2019 new upside price leg.

Recent news of the US Fed decreasing the Fed Funds Rate by 25bp as well as strength in the US stock market and US Dollar as eased fears and concerns across the global markets.  These concerns and fears are still very real as the overnight credit market has continue to illustrate.  Yet, the precious metals have retraced from recent highs and begun to form a momentum base which will likely become the
floor for the next move higher.

The one aspect that many traders ...



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Insider Scoop

10 Biggest Price Target Changes For Friday

Courtesy of Benzinga

  • Credit Suisse raised IHS Markit Ltd (NYSE: INFO) price target from $68 to $76. IHS Markit shares closed at $67.75 on Thursday.
  • Wedbush boosted Restoration Hardware Holdings, Inc (NYSE: RH) price target from $170 to $185. RH shares closed at $169.49 on Thursday.
  • Mizuho lifted Seagate Technology PLC (NASDAQ: STX) price target from $46 to $50. Seagate shares closed at $52.94 on Thursday.
  • UBS raised the price target for Weight Watchers Intern...


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Lee's Free Thinking

Federal Reserve Bank of New York Statement On Repurchase Operation - Roll Over Beethoven!

Courtesy of Lee Adler

This is a syndicated repost courtesy of NY | Press Releases. Original: Statement Regarding Repurchase Operation. Reposted with permission. 

September 19, 2019

In accordance with the FOMC Directive issued September 18, 2019, the Open Market Trading Desk (the Desk) at the Federal Reserve Bank of New York will conduct an overnight repurchase agreement (repo) operation from 8:15 AM ET to 8:30 AM ET tomorrow, Friday, September 20, 2019, in order to help maintain the federal funds rate within the target range of 1-3/4 to 2 percent.

This repo ...



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Chart School

Crude Oil Cycle Bottom aligns with Saudi Oil Attack

Courtesy of Read the Ticker

Do the cycles know? Funny how cycle lows attract the need for higher prices, no matter what the news is!

These are the questions before markets on on Monday 16th Aug 2019:

1) A much higher oil price in quick time can not be tolerated by the consumer, as it gives birth to much higher inflation and a tax on the average Joe disposable income. This is recessionary pressure.

2) With (1) above the real issue will be the higher interest rate and US dollar effect on the SP500 near all time highs.

3) A moderately higher oil price is likely to be absorbed and be bullish as it creates income for struggling energy companies and the inflation shock may be muted. 

We shall see. 

...

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Digital Currencies

China Crypto Miners Wiped Out By Flood; Bitcoin Hash Rate Hits ATHs

Courtesy of ZeroHedge View original post here.

Last week, a devastating rainstorm in China's Sichuan province triggered mudslides, forcing local hydropower plants and cryptocurrency miners to halt operations, reported CoinDesk.

Torrential rains flooded some parts of Sichuan's mountainous Aba prefecture last Monday, with mudslides seen across 17 counties in the area, according to local government posts on Weibo. 

One of the worst-hit areas was Wenchuan county, ...



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Biotech

The Big Pharma Takeover of Medical Cannabis

Reminder: We are available to chat with Members, comments are found below each post.

 

The Big Pharma Takeover of Medical Cannabis

Courtesy of  , Visual Capitalist

The Big Pharma Takeover of Medical Cannabis

As evidence of cannabis’ many benefits mounts, so does the interest from the global pharmaceutical industry, known as Big Pharma. The entrance of such behemoths will radically transform the cannabis industry—once heavily stigmatized, it is now a potentially game-changing source of growth for countless co...



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Mapping The Market

How IPOs Are Priced

Via Jean Luc 

Funny but probably true:

...

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Members' Corner

Despacito - How to Make Money the Old-Fashioned Way - SLOWLY!

Are you ready to retire?  

For most people, the purpose of investing is to build up enough wealth to allow you to retire.  In general, that's usually enough money to reliably generate a year's worth of your average income, each year into your retirement so that that, plus you Social Security, should be enough to pay your bills without having to draw down on your principle.

Unfortunately, as the last decade has shown us, we can't count on bonds to pay us more than 3% and the average return from the stock market over the past 20 years has been erratic - to say the least - with 4 negative years (2000, 2001, 2002 and 2008) and 14 positives, though mostly in the 10% range on the positives.  A string of losses like we had from 2000-02 could easily wipe out a decades worth of gains.

Still, the stock market has been better over the last 10 (7%) an...



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Promotions

Free eBook - "My Top Strategies for 2017"

 

 

Here's a free ebook for you to check out! 

Phil has a chapter in a newly-released eBook that we think you’ll enjoy.

In My Top Strategies for 2017, Phil's chapter is Secret Santa’s Inflation Hedges for 2017.

This chapter isn’t about risk or leverage. Phil present a few smart, practical ideas you can use as a hedge against inflation as well as hedging strategies designed to assist you in staying ahead of the markets.

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About Phil:

Philip R. Davis is a founder Phil's Stock World, a stock and options trading site that teaches the art of options trading to newcomers and devises advanced strategies for expert traders...

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