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Subject:  Re: Starbucks as Rule Maker? Date:  8/31/2000  5:07 PM
Author:  akleck Number:  7003 of 8329

My 2 cents, I think Starbucks is a reasonable place to go to balance technology. I favor tech stocks, and so it's a challenge to research non-tech. I'd be interested to know what other companies you're considering, especially if they meet the RM criteria in the fundamentals.

Starbuck's numbers don't quite reach the standard on net margin, they seem to be hovering around 6% if I'm not mistaken. Perhaps this is as good as we'll get in this industry. The rest of the fundamentals look good, though.

I'd watch their sales growth, which is trending slightly down. They're promising to add something like 500 more stores in the next couple of years by building up into other countries. This should help.

In terms of competition, as an investor I think it's a good thing when a company is the one we bash because they have so much visibility. They're everywhere. This equals convenience.


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