Economy - A Falling Starbucks

Despite a bullish story in Barron's, the coffee retailer's shares were losing value amid a tough day for the stock market.
In "Something Good is Brewing," Senior Editor Jacqueline Doherty wrote that "investors may be too dismissive of [CEO and Chairman Howard Schultz] and his company, especially in view of Starbucks' history of innovation and growth."

In mid-day trading Monday, shares were down 2.6% to $14.57. But Starbucks' stock is has lost about a quarter of its value since the beginning of the year. Shares are up slightly since hitting a 52-week low of $13.33 in July.

.Starbucks' cost-cutting measures, which include closing 600 stores, and its new food offerings could pay off over the next year, Doherty writes. International expansion could also help boost shares.

"There's a lot more upside than downside" to the stock, Scott Chapman, a partner and portfolio manager at Lateef Investment Management in Greenbrae, Calif. told Doherty.

Source : Barrons