Starbucks (SBUX) NewsBite - Cramer Bearish on SBUX
Posted on December 04, 2007 at 05:29 AM EST
Starbucks Corp. (SBUX) opened at $22.6. So far today the stock has hit a low of $22.41 and a high of $22.67. SBUX is now trading at $22.52, down 0.29 (-1.27%). After hitting a one-year high of $37.14 last December, the stock hit a one-year low of $21.77 in November. CNBC's Jim Cramer gave bearish comments on SBUX yesterday. He thinks the stock is headed below the $20s. He does not like the company's growth prospects right now, and thinks it has become an inconsistent company. Technical indicators for SBUX are bearish and steady, while S&P gives the stock a very positive 5 STARS (out of 5) strong buy rating. If you’re looking for a hedged play on this stock, consider a January bear-call credit spread above the $25 range. SBUX hasn’t been above $25 since early November and has shown resistance around $23.50 recently. This trade could be risky if Starbucks turns its brand image around, but even if that happens, this position could be protected by budgets that are probably tightening too much to include a $4 cup of coffee. [LHF- Seven Summits Strategic Investments NewsBite]
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