Downgrade Hits Starbucks

Originally Published In the News September 27, 2007 9:40 AM

Bloggers have recently been taking Starbucks Corp. (SBUX-NASDAQ) to task for being less than forthright, and today the big boys are as well. We don’t know if rising dairy costs will end up being the culprit, but Bank of America is not waiting to hear the next excuse from the folks in Seattle, and downgraded the stock to Sell this morning. Sands Capital survived the downdraft in Apollo Group (APOL-NASDAQ) last year, and as the largest shareholder here are no doubt hoping for a jolt to propel the stock. But much like the Private Equity Biz, it appears the golden days of Starbucks are over. No position.

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