SBUX and Coffee Prices …

one would think that IF the price of coffee is going up THEN it would have an impact on SBUX operations?

first chart – SBUX – candles and Coffee Futures – blue line

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I don’t see much of a correlation …..

How about, SBUX RELATIVE STRENGTH COMPARED TO COFFEE FUTURES?  THE RATIO OF SBUX/COFFEE?

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now, that is better … it’s not the price of coffee alone but the relative strength of SBUX versus the price of coffee – using ratio analysis we can see that this is what’s causes the movements in SBUX.  SBUX/COFFEE is a good indicator to manage risk …

Is the ratio hitting some targets?  Ummmm, yes.

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so, SBUX is taking off parabolically …this never ends well and we have some very strong targets coming in on the RATIO.  Certainly keep an eye on this ratio as it’s pretty important to future directional moves in SBUX.

Bart

One Comment on “SBUX and Coffee Prices …

  1. Look at another parabolic coffee maker for reference… GMCR.

    Traded as high as 45x earnings before its swoon.

    Interested in correlation between SBUX & GMCR.

    Gmcr is the weaker of the two… Now trading where it should be based on valuation. SBUX should be around $28-25

    Sent from my iPhone

    >

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