Starbucks SBUX Solid cash flow, stock price stagnant for a while but starting to move up.
Between China and their “roastery” initiative, their growth story is not over. I will be
patient with this one, as it pays a dividend and since it doesn’t move much can always tap
into it for cash if needed for must have opportunity.
Disney DIS - Kinda like Starbucks. They aren’t going anywhere and have had solid growth
despite ESPN/cable issue. I feel like this one is a coiled spring now with the recent pull
back to steal a term from Saul.
Kevin, the earnings for these two companies for 2017 are expected to be around what they were last year. 2018 isn’t expected to blow the doors off either. I would expect if you’re looking for big safe companies, you could expect to do much better adding to GOOG, FB, or AMZN. These offer rapid growth in addition to safety. And they’re not necessarily even that much more expensive – GOOG and FB have P/E ratios in the same neighborhood as SBUX.
In what way do you think Disney is a coiled spring? What do you see driving growth higher than analysts expect? Same question for SBUX.
Bear