Investors should look for broken stocks, not broken companies. That's one of my favorite investment rules, and successfully following it can make you a lot of money. So, which label applies to coffee chain giant Starbucks (NASDAQ: SBUX)?
The stock has suffered an extended slide and is over 40% off its former high after a poor reception to its fiscal second-quarter earnings report. The current drop is the worst since the financial crisis in 2008.
There's no doubt Starbucks is struggling, but there are some essential facts to know before you write the company off. In fact, Starbucks could be a buy-and-hold forever stock, despite its current headaches.
