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Buy Starbucks Ahead of Earnings?

Thursday, 26 Jul 2012 | 1:19 PM ET

On Thursday, CNBC's Fast Money pros were taking a long hard look at Starbucks with the java giant due to release results after the bell.

Both traders Brian Kelly and Stephen Weiss are buyers ahead of the numbers. “I’d love it if they missed and the stock traded down,” says Weiss, managing partner at Short Hills Capital.

“But even if that doesn’t happen I’m looking to buy. This is one to own and put away.”

Kelly also sees Starbucks as a long-term hold, particularly because of the new initiatives underway at the company.

For example, Starbucks announced the opening of three new Evolution Fresh Inc. juice stores.

And in the second quarter, the company opened a Tazo tea store in Bellevue Washington.

He takes developments as confirmation that Starbucks plans to expand into juices and teas, something more and more Americans are buying.

Strategic investor Dennis Gartman however, can’t be bothered. “The stock is breaking down,” he says. That’s a negative technical signal and he tells us a good reason to stay away.

“And personally," he adds "I’ve never been to Starbucks and I don’t plan on going.”

Posted by CNBC's Lee Brodie

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Trader disclosure: On July 26, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Link is long (AAPL); Link is long (JPM); Link is long (WFC); Link is long (MCD); Weiss is short (AAPL) puts; Weiss is long (T); Weiss is long (VZ); Weiss is short (JCP); Weiss is long (QCOM); Weiss is short (AKS); Weiss is short (X)

For Kevin Landis
Firsthand Technology Fund owns shares of (FB)

For Hal Goldstein
Nuveen Asset Management owns shares of (AMZN)
Nuveen Asset Management owns shares of (AAPL)

For Chris Larsen
Piper Jaffray usually provides bids and offers for the securities of Sprint Nextel Corp. and will, from time to time, buy and sell Sprint Nextel Corp. securities on a principal basis.
Piper Jaffray usually provides bids and offers for the securities of AT&T, Inc. and will, from time to time, buy and sell AT&T, Inc. securities on a principal basis.
Piper Jaffray was making a market in the securities of Verizon Communications Inc. at the time this research report was published. Piper Jaffray will buy and sell Verizon Communications Inc. securities on a principal basis.

For Gene Munster
Piper Jaffray makes a market in the securities of the following companies, and will buy and sell the securities of AAPL





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