Below is a note written by CEO Keith McCullough:
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Wait on it ... It's not like Starbucks (SBUX) wasn't a "short" in Howard Penney's eyes prior to today's Fed #Cowbell Day. It's just that waiting and watching for our Best SELL Ideas (Institutional Research product) takes time and patience. Here's a summary excerpt from Howard's Institutional Research note on Luckin (LK) that applies to his SBUX thesis: "Make no mistake, the emergence of Luckin into the coffee market in China is a binary event for Starbucks. Luckin has a better than 50% chance of causing significant disruption in the China coffee market. The implication of this will be significant pressure on Starbucks China profitability and growth rate. On the other hand, Luckin could just be a one hit wonder and disappear in a few years. I suspect the latter is not the case!" Sell the bounce, KM |
