Starbucks Still Outside of Value-Land (SBUX)

By Douglas A. McIntyre Updated Apr 28, 5:29AM EDT · Published Nov 17, 2:49PM EST

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Starbucks_logo Starbucks Corp. (NASDAQ: SBUX) is a stock which we get asked about constantly by our readers. Now that the price is at a certain point, we have finally been able to cover this stock in our weekly stock newsletter called "10 Stocks Under $10" which was sent to subscribers via email last night. Below is a partial synopsis:

We started pondering the value as two companies with NorthAmerica’s mature market as an earnings play and with the internationalside of the business. We still think that this could be a workinglong-term strategy.

But we have looked over the results, the market, and appliedeverything we can come up with on forward valuations and more.

Starbucks could see its shares go down to $7.50 before deep valueinvestors out there start to say, "Hey, this thing has gotten dirtcheap even with all of the problems out there."

If the market recovers handily, then we’d expect to see it trade up but maybe not as much as the broader market. Stay patient, as you’ll likely see this one get a tad lower.

Jon C. Ogg
November 17, 2008

About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.