Can the Lows Hold for Starbucks Corp (NASDAQ: SBUX)? Asks Market Timer Frank Kollar

November 11, 2008 (FinancialWire) (By Frank Kollar)

Shares of Starbucks Corp (NASDAQ: SBUX) rallied from October 28 through November 3 but have since declined to give up almost all those short term gains. An hour after the close on Monday, November 10, Starbucks was down another 3% in after-hours trading after posting an earnings report that missed estimates.

Starbucks has now lost 78% of its share value since mid-2006.

But the lows reached back on October 24 when Starbucks closed at $9.59 a share are still holding. Seemingly most of the bad news is factored into shares of this widely followed company and certainly the lines for morning coffee are just as long this month as in any previous months at our local coffee stop.

Our sense is that the lows will hold; setting up a long trade in Starbucks and using a buy stop around $9.00 to $9.05 a share. The trade is risky but the potential gains appear substantial with a target of $16.00 a share.

Kollar is editor and chief analyst at FibTimer.com (http://www.fibtimer.com) which offers market timing strategies for S&P and Nasdaq index fund traders, as well as bond, gold, small cap, sector, ETF and stock trading strategies.

Kollar’s research has shown that the financial markets are in tradable trends approximately 80 percent of the time. FibTimer strategies define trends and trade them in both advancing and declining markets. Caring nothing about what newscasters say or what the latest economic indicator predicts, trends are where the profits are, and that is where FibTimer is.

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