Starbucks (SBUX)

The run they’ve had since Howard Schultz took over has really restructured the company and put the growth back in. The multiple has continued to accelerate and grow quarter after quarter as they beat earnings by a large margin. The valuation is at the high end. Growth is somewhat on track, but it is a competitive market and they still have to broaden out. Growth stocks have been in vogue since about 2012 in the US in a huge way, and we are starting to see the valuations taper off, and money shift to the areas that have underperformed recently.

Came out with earnings after the closing bell and had record numbers, but they did trail estimates. Doesn’t see any reason to Sell at this time. You are paying a bit of a premium for this type of name, but when you look at the street, there is not a lot of names that will mimic this class of company. Trading at 33X earnings and their growth rate is in the high teens. If the stock dipped on today’s news, he would probably be buying the stock.

(A Top Pick Dec 16/14. Up 62.06%.) Well-managed. This is something that you want to own.

It has been a little bit weak. The dip in September has flushed a lot of people out. The space has some real winners and some real losers. It may get a little weaker in the short term. $52 would be the support level.

Starbucks (SBUX-Q) or Facebook (FB-Q)? He likes both. They are both very strong stories for different reasons. This one is right in the centre of where you want to be with affordable luxury. Both have a very exciting growth stories. If he had to make a choice, it would probably be Facebook over this.

Phenomenal brand. They are a consistent performer. They have good growth and great management. You can pay up for growth, but this is different. Whatever they do they do it well. It comes back to process. It is about to break out again.

A fantastic company. A phenomenally successful company. It is trading at the high end of its range. Hold it or wait for a correction to buy it. He regrets selling it.

They continue to grow. There are now 22,000 stores in 67 countries. One of the most recognized names in the world. They are expanding into tea, juices, premium baked goods, breakfast and even alcohol in some locations in the US. They continue to enjoy a very strong pricing power. Dividend yield of 1.12%.

Had an incredible run. He would not add to it now. The results are double digit revenue and earnings growth. It is due for a breather or a pullback.

Fundamentals are solid. A very well-run operation. They seem to be able to keep ahead of the technology. They invent something to reduce line-ups and they invent new products that people want to have. Internationally they are really exploding. Dividend yield of 1.17%.

Has dropped down to the 100 day moving average, so that could provide an opportunity. It didn’t drop much during this market decline. There is not a comparable competitor at this point. They are doing all the right things by serving alcohol, getting more into the breakfast foods and getting into tea and different juices.

It would be one of his top picks but he used it two or three times. They are dominant and have so many levers. They continue to innovate. China is exploding for them. Use a stop of $53-4.

It is a blue chip US stock.. Great to own for the long term. People are always drinking coffee and tea. Great stock to own if you can get it for a good price.

Generally has been a fabulous investment. They continue to gain share. He does not own it because it is not a value stock.

This is in the sector that has been pretty strong. The model is well-liked. Chart shows the low was in late 2008 followed by a rebound bull. Then there was a mini bear in 2012. This was followed by new highs. He thinks this works higher.