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SBUX: TRADING LEVELS UPDATE

From a quantitative perspective, Starbucks is overbought at current levels from a TRADE perspective.  From a fundamental perspective, it remains one of our favorite names in the space.

Keith signaled to us this morning that Starbucks is overbought from a TRADE perspective at current levels, trading up as it is more than 6% today following yesterday’s earnings.  Clearly, the strength of the price action Starbucks in the face of an ugly tape shows that investors are confidence that the back-end loading of FY12 EPS growth is not a cause for concern.  We've liked this name for a long time and remain positive on the stock.

SBUX: TRADING LEVELS UPDATE - sbux levels

Howard Penney

Managing Director

Rory Green

Analyst