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Cramer: Don't buy Starbucks on Ackman's new investment


Added 10-09-18 03:02:02pm EST - “Investors who buy Starbucks on the news of Bill Ackman's new stake? "may end up being a little disappointed," Jim Cramer says.” - Cnbc.com

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Posted By TheNewsCommenter: From Cnbc.com: “Cramer: Don't buy Starbucks on Ackman's new investment”. Below is an excerpt from the article.

Don't chase Starbucks stock now that activist investor Bill Ackman has revealed his $900 million stake in the company, CNBC's Jim Cramer said Tuesday.

For one, the stock has been "going up straight" since Starbucks announced in July that it was working on getting things right and bought back shares, Cramer said on "Power Lunch."

Starbucks stock jumped more than 2 percent Tuesday afternoon on the news that Ackman's fund, Pershing Square Capital, now has 15.2 million shares of the coffee chain.

However, Cramer doesn't think there's much Ackman can do on the activist investor side. Instead, Ackman is probably "along for the ride," the "Mad Money" host said.

"If you come in now expecting that Ackman is going to demand certain things – well, I'm sure Ackman's a happy camper," he noted. "A lot of things have been right but there is no need to chase if this quarter is not going to be brilliant. And I don't think this quarter is going to be brilliant."

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