Black List - SBUX
There is no better way to learn then from a stock that you traded miserably. So I decided to dive into my black list (stocks I will never touch again).
Starbucks - SBUX
I traded this stock nearly two years ago. About that time, SBUX was really starting to makes strides. Everybody was in love in the whole business plan, and it seemed like they were expanding faster than anything. I, along with many, was expecting big things from SBUX.
I first bought into the stock at $32 and, from there, it jumped 8 points to $40 in just under a month. Instead of selling out, I felt the stock had much more to go. Obviously I was wrong. The stock hasn’t even touched the same level since, and now nobody likes the business concept anymore. They feel that SBUX lost its “homely” feel.
I ended up selling for no gain about six months later. Back than I really wasn’t into chart examination. If was I was maybe I would of seen this coming.
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For stocks like this I always have to go by earnings estimates. They tell you a lot about a company and the future of that company. I never bought SBUX because I knew their expansion couldn’t last. It was too much too soon and when you start seeing the same store on both sides of the same street, there’s a problem.
I write about investing in growth stocks on my blog and explain the process. Have a look. Good for you for staying away from this one…of course you probably would have made a killing had you shorted it instead.
that is an interesting way of looking at it (shorting).