Click to Enlarge The company that brought specialty coffee mainstream — Starbucks (SBUX) — has been in the news lately for its plans to do the same thing for specialty teas in NYC tea bars through the Teavana brand. This business growth has shown to be positive for SBUX stock, up over 50% YTD.
However, last week SBUX started to pull back from its torrid uptrend — but bulls confirmed the uptrend when they kept buying around the middle of its rising channel. Since then, SBUX has continued its triple-shot, no-foam uptrend, with just a slight 0.2% pullback Monday. I can see the stock rising about 5% from current levels.
Recommendation: Buy SBUX at current levels for an $85 target.
Jon Markman operates the investment firm Markman Capital Insights. He also writes a daily trading newsletter, Trader’s Advantage, and CounterPoint Options, a service geared towards helping individual traders make steady, consistent profits with the VIX. . Check out his Top Stock for 2012 here.
Follow Jon Markman at Google+.