Connecting With Friends

I really thought that this weekend would be one of my more relaxing weekends since I am joining a new firm (yeah!) next week and quite frankly, I just wanted to veg out a little.

But when you have a few good friends and a good spouse, you may find your weekend being filled up with activities and a little celebration I guess. So, my "weekend" started Thursday night with a few drinks with one of my buddies. And then Friday, the wife and I met up with an old friend - a true friend - whom I haven't seen in years.

Happy Hour turned into dinner and then after dinner drinks etc. and before too long it was nearing midnight and we were saying goodbye.

I think that when you are at a phase in your life where you are taking an assessment and wondering if those friends of the past will emerge one more time, it can be quite refreshing to find that they do emerge. It is so real and so much fun to experience life in this capacity, to reconnect and to have "one for the road" - again! In this way, I believe we are truly experiencing life.

On a separate note - and I will probably post in more detail about this later - I watched Spike Lee's documentary on hurricane Katrina's New Orleans' victims and the government's botched attempt to help Lousiana managed that awful event.

I think Lee is an accomplished filmmaker. But if you are telling me that many of the residents in New Orleans could not find a way to make some type of arrangement to get out of town well before Katrina hit - before Nagin's notice - then I would say that we are not talking about the same hurricane.

Missing My Sushi

We made a commitment not to have sushi for at least two weeks - a sushi "detox" I guess - just so that we can miss the stuff for once! But I can't, and I as post, I am thinking what I might have for lunch tomorrow.

My wife introduced me to sushi several months ago. I can only tell you that, for the first time, I have found a food that I truly enjoy that also has health benefits.

I tried a little trick on the way home from the market today with, "oh, when was the last time we went out for sushi?", knowing full well it has been less than a week - completely in violation of our two week policy. "Oh gee Derrick, we had sushi last Tuesday and besides, I'm cooking tonight..it's Sunday!" "Oh, yeah, that's right..how could I forget", I replied.

If you're adventurous and haven't tried sushi, then go for it, but be careful, because it can become very addictive very quickly. Even if you have to make adjustments because of gas prices Mr./Mrs. Consumer, you'll find a way to pay for sushi!

Rate Pauses, Starbucks & Heroes

I can't believe it's been almost an entire week since I posted!

There is so much that has been happening. First, the Federal Reserve has paused on it's rate hikes. Therefore, the Federal Funds rate will stay - for the moment - at 5.25%. It would appear that energy prices (we know) are beating up the consumer a little and housing prices are not defying gravity as some have tried to argue. There is a convenience store (chain) called Wawa in PA, NJ and other states. Some of these stores have gas stations. After paying $3.05/gal, I recently drove by a Wawa that advertised $3.01 !

I'm still waiting for my own gas station when this Iraq thing is over.

There is a nice article today in the WallStreet Journal about what this rate pause could mean to you.

On a separate note, on my way to pick up my household "risk manager" - the wife - I stopped by Starbucks (SBUX). It is true!! It is true!! They are having problems making those frozen drinks. To be fair, I did not have to wait 20 minutes, but the gentleman who greeted me said, "I will be right with you..." Usually, someone is at the cash register as soon as you arrive. This was 3:45pm!
Anyway, I can tell you that the atmosphere at this particular Starbucks aint so grand, my friend. The last time I checked, Starbucks was at $29.55 after hours.

Late last week, I was able to get together with a college buddy. I forgot to ask him what I thought was a very painful and difficult question, so I phoned him today and put the question to him. I wanted to know how he was coping with a couple of recent losses (family member, pet). The interesting thing is that through him, I am learning a little about coping and dealing with setbacks, although I have not experienced them on his level yet. It amazes me how people, who you expect to be overwhelmed with grief, turn out to be the ones who are encouraging you, when all along your issues pale in comparison to theirs. But then again, everyone can't be a hero.

"Tall Frapp? That'll Be 20 Mins Sir"

The executives of Starbucks can spin it in whatever way they want to, but the reality is this: when it is 85 degrees at 8am, no one wants to wait 10 mins for a cold drink.

Moreover - and we've been here before in other posts - the fact remains that pricey coffee and other drinks are becoming a bit of a problem for price conscious consumers.

The WallStreet Journal reports today that Starbucks stock has tumbled a good bit. Fifteen dollars a share..here we come!!!!

Surviving A Falling Starbucks

I really want to own Starbucks. I really want to put the stock in my portfolio, but nowadays, I just can't justify it. Maybe when it drops to $15 next March, I will scoop some up.

Sure, I am still trying to beg, steal and borrow for my "$300" latte' when the temperature is not 100 degrees, but since we are clearly at the end of an economic expansion, companies like Starbucks (p/e 48) will more than likely continue to see their sales lagging forecasts. If I had a long position here, I would be loading up on puts.

There is an interesting report out today - check out MSN - about Starbucks' (symbol SBUX) sales figures and the problems they have been having etc. But what is interesting to me was the suggestion that there is this "pullback" on consumer spending. Oh, really? I think it's called inflationary pressures.

Anyway, expensive coffee, high operating costs - everyone gets full medical benefits at Starbucks by the way - , long waits and no dividends to stockholders....that tells me that I am going to sit this one out.

If you dump your Starbucks stock, there are some ideas out there.

If you are looking for yield in this climate (no pun intended), Bank of America pays a handsome 4.35% dividend yield, roughly $0.56/shr per quarter. If you need to be liquid and your local bank doesn't want to give you more than 2% on your money, then consider some of the online outfits. ING is giving me 4.35% on my savings account! And guess what? I don't have to stand in a line and be ignored by some 22 year old snob! The rate I am gettng is only 61 basis points lower than than 10 year Treasury!