Activist pressure at Starbucks is the jolt the coffee giant needs to shake its slump

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Activist pressure at Starbucks is the jolt the coffee giant needs to shake its slump
Jim CramerInvestment StrategyMarkets
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'I think Starbucks is a very big buy here because of Elliott,' Jim Cramer said Monday.

Elliott Management's stake in Starbucks is exactly the jolt the struggling coffee stock needs to return to its winning ways. The well-known activist hedge fund has taken a significant position in Starbucks and is in discussions with the company on ways to improve its depressed stock price, The Wall Street Journal reported Friday afternoon.

mountain SBUX stock performance year-to-date. Elliott, led by founder Paul Singer, has an impressive track record investing in companies with underperforming stocks. The activist firm is known to seek board seats to help make major company decisions or revamping corporate strategies to improve fundamentals and drive stagnant stock prices higher. Elliott is no stranger to our portfolio.

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