Starbucks Catches A Buzz

http://www.forbes.com/2010/03/16/starbucks-mcdonalds-retail-markets-equities-instant-coffee.html

Terms
1. UBS- is a global firm providing financial services to private, corporate and institutional clients
2. earnings momentum- a term used to describe a pattern of performance where a stock shows increased value from one period to another.
3. VIA instant coffee- microgrinded coffee that preserves all of their essential oils and flavor


Explanation

Starbucks shares went up to a 52- week high on March 20,2010. Each Starbuck share was $25.29. Accoriding to UBS analyst David Palmer, Starbucks had "increased sales and earnings momentum." David Palmer says that UBS is "upgrading Starbucks based upon our belief that sales and earnings momentum can drive ongoing, significant earnings revisions over the next two or more years." Starbucks has created their VIA instant coffee. If VIA instant coffee sales are stong,then as much as 15 cents could be added to Starbuck shares over the next three years. David Palmer predicts that Starbucks could earn between $1.09 and $1.14 per share.



Prediction
I agree with David Pamler. If Starbucks' new VIA instant coffee is a success with customers all over the world,then their shares will definitely go up. Also, if Starbucks created another new product, such as VIA instant teas for non-coffee drinking customers, their share prices could even double.