Investment Q&A

Q: Could you give me an update on your view on Starbucks since your last comments 8 months ago. I m holding it in an RRSP account and I am reviewing for maybe a better large cap consumer discretionary stock is you can suggest 2-3 .

Q: Trying to understand the rationale of SBUX closing down locations. I may have it wrong but here goes. On the assumption that locations are franchises, then why close them down? It's the owner of the individual location that might be losing money but they are still buying product from Starbucks and contributing to their top line. Question is: are locations owned directly by Starbucks? If so, then closing down is the route to go.

Q: Considering buying SBUX because of its new leader. But I find LKNCY very attractive as well. - with good momentum this year.

What would your inclination be here? ….or both?

Thanks.

Q: Your thoughts, please, on replacing a current holding of SBUX with BROS based on recent performance and potential future growth advantages of the latter. Thanks.

Q: Hello,

If you have to chose 1 or 2 with the highest conviction of potential upside, which would you chose? And at what price would you be comfortable starting a long term position?


Thanks!

Q: I sold SBUX to take a capital loss and bought CMG as a proxy. After comparing growth projections and balance sheets I am wondering if I should bother buying back Starbucks after 30 days or just keep Chipotle. SBUX looks cheaper but maybe cheap for a reason. Can you please compare the two and provide your thoughts as to which one would be better for a long term hold?

Q: Your thoughts about a new position in either rrsp or tfsa for 3/5 years in this volatile environment ?
Thank you for such a great service to us all.

Q: A Market Call guest, Gordon Reid, was very negative on SBUX, saying that they are wrong to borrow money to buy back stock. I disagree. With a return on assets of 14% and a dividend that is well covered by earnings, I would argue that loading the balance sheet with low-cost debt to maximize return on equity is a sound strategy. Who's right?

Q: The market clearly likes the new CEO, do you? Does this change your view on SBUX? Or might this be a good time to sell and reevaluate the company after a while? Thank you.

Q: LULU,VRT,GLXY,MU,MSFT,ESAB,STARBUX
Which one to keep and which one is sell?

Q: Hello team.

JD Vance has said he wants a lower US dollar. What would be 3 or 4 stock market based consequences / implications be if the US dollar was and remained significantly weaker? Lastly, what type of policies do presidential administrations have that they can use to purposely devalue their dollar?

Thanks.

John

Q: I am currently only hold MG in the consumer discretionary sector and need to increase my exposure to the sector. MCD, SBUX and LULU have all dropped over the last few quarters with worry of the US consumer pulling back their purse strings. What are your thoughts on those three and what Canadian stock in the consumer discretionary sector interests you today? Long term buy and hold investor.

Q: Can you tell me what analysts are expecting for Starbucks' upcoming earnings on the 30th?

Also do they break out expectations by how much same store US sales they are expecting?

Any and all details appreciated.

Q: Hi Group can you please rate in order of your preference for short term trading not to buy and hold . Give me the ones with the most potential to grow. Most of the ones I have identified have been in the tank lately and should be ripe for some sort of recovery. Also if you have any good ideas that fit the criteria please feel free to add/rate the opportunity as you see it.

Q: Thoughts on SBUX at current prices?

Q: There are some really beaten down stocks that have been known as "blue chip" investments over the years. Which of these stocks do you feel represent the best opportunity in order of priority buy.

Q: Many Consumer brands are under pressure but will turn around at some point soon. Any guess as to how far out? What to watch for? Could you rank and add thoughts behind your best overall pick to accumulate... Is there another company you would also consider at this time?

thx, M

Q: I have 3 questions in relation to my plans for realizing a capital loss re: a Starbucks (SBUX) holding within a corporate account. So far in 2024, I have realized net capital gains of ~$260,000 (100%) within this corporate account (I did this so as to capture the 50% inclusion rate effective before June 25, 2024). However, I now wish to partially offset this realized gain by realizing a capital loss for this position in Starbucks, currently at ~$90,000 (100%) unrealized capital loss.
(A) Would the 66.67% inclusion rate apply for this SBUX loss, if realized, even if all the previously realized capital gains during 2024 are applied at the 50% inclusion rate? (I realize you are not accountants, but I do know that you are generally aware of basic accounting principles related to commonly encountered investment scenarios.) It is my understanding that the 66.67% inclusion rate would apply, for this loss after June 25, but I am hoping you can corroborate this.
(B) My plan is to reacquire the Starbucks shares, after 30 days; however, I am not sure whether to just hold the SBUX sale proceeds in cash, for the minimum >30 day period, or whether to switch temporarily into a similar type of investment—what would you consider to be a reasonable “proxy” for SBUX? (note—I already own a similarly-sized position in QSR as my current SBUX position). Or given the possible slowing of consumer spending, and frequent summer stock trading doldrums, would you rather just hold cash for the >30-day waiting period?
(C) Finally, I am always nervous when the >30-day waiting period overlaps with a company earnings announcement (potential for greater price volatility). It appears that the next likely earnings announcement date for SBUX is expected to be around August 6, 2024. In other words, I could either realize the SBUX loss in the next few days (e.g., settlement on July 3 or July 5), or else wait until after the early August earnings announcement. I am curious how you would think about and approach this issue?

Ted

Q: What is your current opinion of EIT.UN.ca - is it a good investment or would you have alternatives that are better?
Thanks

Q: Can you comment on SBUX earnings/outlook? It's getting hammered today - is it worth a look for a patient investor with a long-term (5 years+) horizon? Or are there other consumer discretionary options worth buying at current levels that will provide a greater total return over this timeframe?