The price of arabica has increased significantly and while Starbucks is a major buyer, it is not the largest buyer and does not have significant pricing power. The competitive pressure that has been applied by McDonald's, Dunkin Donuts and a host of imitators has not eased. Given this, margins can be expected to remain at current levels. While the company can still achieve more improvements with respect to its internal metrics, those are unlikely to drive the stock much beyond its current level. The key driver for Starbucks' stock in the coming years is going to be more dependent on foreign market growth than any other single factor. Foreign market indicators are not a cause for intense optimism. Dubai's default calls into question the long-term growth potential of the Middle East. China's addiction to currency manipulation will eventually be broken, putting at risk the company's plans for...
There are other potential growth markets, such as Southeast Asia or Japan, but Starbucks is a very high end product in many of these markets and that will limit growth opportunities to growth in the upper middle class of these countries. In short, the stock has performed well since it hit bottom in early 2009, but it has likely achieved the bulk of its growth. The company is well-positioned, hence the "hold" recommendation, but as a growth story Starbucks' operational improvements are not going to offset the risks in foreign markets that will likely stifle the firm's long-term growth ambitions.
The projected growth rates are of 7% for 2009, 7% for 2010, 8% for 2011 and 9% for 2012 (Hoovers). Wyeth is expected to increase at higher rates due to its being taken over by Pfizer. 3. Stock Price Analysis The Wyeth stock is being currently (September 16th, 2009) traded at $47.70, revealing a 0.23 (0.48%) decrease relative to the previous trading session, which closed at $47.93. The day's high value
Financial Research Report This is a review of Caterpillar, Inc.. The report is broken down into three sections -- company overview, ratio analysis (which includes a trend analysis), stock price analysis -- that are designed to give a thorough overview of the complete company. Company Overview Caterpillar is one of the best known name brands, around the world for its manufacture of heavy machinery made, primarily, for the construction industry. The company began
Financial Research Report A: Introduction There are several factors that one ought to take into consideration before investing in a firm. These factors include, but are not limited to, the enterprise's performance, the caliber of the management in place, the financial condition of the Company, and future prospects of the business. However, it is essential to note that one key factor that could be overlooked, despite its relevance, is the profile of
The only observation that could be made here is that one would expect a larger proportion of the total expenses to be allocated to research and development, given the fact that this is such an important part of Microsoft's activity and essential in order to obtain a competitive advantage on the market. Asset and Capital Structure 2008 Cash and cash equivalents $10,339 Accounts receivable $13,589 Inventories $985 Total fixed assets $29,551 The asset structure at Microsoft reflects some of the
Financial Analysis Rio Tinto is a major mining company in the FTSE 100, specializing in iron ore. The company is geographically diversified. A close competitor is BHP Billiton, and these two firms are compared on the basis of their operations and financial statements. From a financial perspective, both firms are relatively equal. Both firms had strong years in 2008 and 2010, with a weak year in 2009 in between. Rio Tinto's
Financial Analysis Rationale for choosing the company for which to invest The company selected for this financial research report is Intel Corporation. The rationale for selecting this company is because Intel is considered to be one of the major pioneers and forerunners in the field of technology. Intel Corporation dominates about 80% of the market share that is made up of microprocessors. Ratio analysis It is imperative to note that the financial statement of
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