Starbucks shares rise after Luckin Coffee bankruptcy filing
February 16, 2021
Menu
From marketwatch.com Starbucks Corp.’s stock SBUX, +0.81% edged up in
From fool.com If you’d bought $156,000 worth of Starbucks (NASDAQ:SBUX)
There’s no compelling reason to get excited about this stock. The only real news out there is that Chinese regulatory authorities will impose a 61 million yuan penalty against the company after it admitted to fabricating revenue earlier this year.
Prices for derivatives at US stock exchanges dropped sharply, just to return to a balanced state after a few hours when traders regained their composure.
In InvestorPlace’s financial newsletter The Daily 10X Stock Report, which is aimed at delivering to your inbox, every single day, a stock pick that could rise by at least 10x, I alerted subscribers on July 27 that disgraced and beaten-up Luckin Coffee (OTCMKTS:LKNCY), despite all odds, looked like a strong buy with huge upside potential. Since then, Luckin stock surged more than 125% higher.
“We anticipate that comparable store sales will substantially recover in China and the U.S. in fiscal 2021 by the end of our first quarters and second quarters, respectively,” said CFO Patrick Grismer on the most recent earnings call. Handheld point-of-sale at drive-throughs, curbside pickup, and a revamped Stars for Everyone rewards program are all key initiatives Starbucks will employ.
Warren Buffet once said, “Never invest in a business you cannot understand.” So, if you enjoy drinking coffee, you may also enjoy investing in coffee stocks. Restaurants that serve coffee have not fared well during the COVID-19 pandemic.
The first distribution of the enhanced amount will take place on Nov. 27 to investors of record as of Nov. 12. At the latest closing stock price, the new dividend would yield just under 2.1%.
The top investor of Massimo Zanetti Beverage group said on Tuesday it would launch a takeover bid for the Italian coffee maker to delist the group as it wants to pursue a broader overhaul of the company.
Sometimes it’s perfectly okay to flip-flop on a stock. Recently I looked through the news developments concerning Luckin, and I didn’t see anything terrible. Is it possible that the worst is over for Luckin stock holders?
CoffeeTalk Media, and its portfolio of products including CoffeeTalk Magazine, is the leading editorial source for news and developments in the business of coffee.
With a staff of dedicated professionals, CoffeeTalk is widely considered the most important and complete independent media provider of information about all aspects of the coffee world – from crop to cup.
