Buy Starbucks Ahead of Earnings?
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)
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