Does Starbucks (SBUX) give you the jitters? This is one stock that seems all but unstoppable. The total return to stockholders has been 127 % in the last 3 years which is about 275 % of what you would have gotten from a general index fund. Can this stock keep up the momentum or are we at a point that entry at this level is not desirable?
Barchart technical indicators:
- When there is a stock that has been on your watchlist for some time a temporary market dip might be an opportunity to enter into a position or maybe add to your present position
- Barchart 80% short term technical sell signal -- might be just a pull back signal
- Trend Spotter sell signal
- Below its 20, 50 and 100 day moving averages
- 13.42% off its recent high
- Relative Strength Index 42.47 and still falling
- Barchart computes a technical support level at 34.65
- Recently trading at 35.43 which is below its 50 day moving average of 38.07
Summary: Starbucks (SBUX) is selling at a 43% premium to the market but the premium may be justified. If the sales and earnings consensus is met savvy investors who buy on this dip could still see between 10.50% to 14.50% annual return over the next 5 years. The big question is buy now or wait. My prediction is those that wait will regret it.
Jim Van Meerten is a Marketocracy Master
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