Note: This was one of my very first posts, and may be worth a second look—for me, too. It's kind of the thesis of this whole blog. I'll be building on it within the next few days.
I will probably be purchasing Starbucks and/or Caribou stock in the near future. I signed up for Suze Orman's Save Yourself program--which is actually tied in with her book Women & Money, but there is nothing stopping men from signing up. Though I don't think this will be a big money-maker, it seems only fitting for my first stock purchase to be that of a specialty coffee company.
If I do opt for SBUX, I'll be hopelessly late to the party--and there's little reason for bullishness about any other coffee chain stock. Here's why: gas prices. When I researched Starbucks and Caribou stock, I noticed that they have actually followed a similar pattern over the past year. Here's what the one-year graph looks like:
Now, here's what gas prices in my hometown of Milwaukee have looked like over the same time range:
Notice anything? Both stocks took a dive in August, 2006--which is exactly when gas prices peaked that summer. Furthermore, both have been trending way down this year while gas does the opposite. Anecdotal evidence on message boards frequented by SBUX employees suggests that patrons are ordering smaller-sized drinks this summer, now that gas has gone up again.