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Monday May 15th 2006
'Caffeinated
Cash'
#9 - SBUX
(STARBUCKS
CORPORATION )
"This is
a company that, simply put, can do the impossible: it can
charge $5 bucks for a cup of coffee and get away with it.
SBUX succeeds where others fail because they have an ambience, and
they've got a workforce that encourage you to keep coming back.
SBUX also aspires to be one of the CD distributors out there.
SBUX - I know there's room, but I think it's basically done growing in
America, give or take a thousand stores. Usually, that means
you write off a co. because Wall Street doesn't care about
international growth, unless that growth happens to be in China, which
is exactly where it is for SBUX.
If you got into YUM Brands (YUM) two years before KFC - one of their
chains - had taken China by storm, you would have made a lot of money!
SBUX intends to have 20% of its sales pouring out of China two years
from now. So, it's really about the best time I can possibly
tell you to get in.
My 10th - my 10th is a big surprise."