Two Ways: Starbucks Shakes Up Its Daily Grind
Strengthen your portfolio in good times and bad.
According to the Wall Street Journal, employees will now grind the beans each time they make a new pot, instead of the old method of grinding all beans in the morning. Timers will sound at 8- to 24-minute intervals to alert them when it's time to make a new pot.
Starbucks spokeswoman Deb Trevino confirmed the changes, which will be rolled out at stores around the US beginning next month. In doing so, the company hopes to win back the loyalty of its customers during a time of global economic weakness all while increased competition from rivals like McDonald's (MCD) and Dunkin' Donuts have taken its toll.
Trevino said, "We are pleased that these changes to our brewed-coffee process will ensure an even fresher cup of coffee."
See related column: Professor Lance Lewis' A Slippery Slope Down for Green Moutain Coffee?
From the Bull Pen: For those playing Starbucks, watch if the 50 DMA ($13.50) holds. Aggressive traders may consider taking a long position at that point, with a tight sell stop below. McDonald's may be a better option, though: Traders can fade (read: buy) the weakness into its 50 DMA ($56), with a sell stop below that level.
From the Bear Cave: Professor Lewis laid out a sound argument to put Green Mountain Coffee Roasters (GMCR) in the bear cave. On a technical basis, we see it slipping below its 20 DMA ($57). Those playing the downside can set a buy stop above today's high ($59). Be wary of near term support at $54 and $52.
Have a great night!
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.
Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
Daily Recap Newsletter