Skip to main content

RealMoney Radio Mailbag: Starbucks Is Piping Hot

Cramer reminds a listener to wait for the coffee chain to cool. Also, why SanDisk is even hotter.

Editor's Note: The following are questions received from listeners of "RealMoney Radio." To send Cramer a question about topics from his radio show, click here. Listen to Cramer's latest radio show by clicking here.

What do you think about Starbucks (SBUX) - Get Starbucks Corporation Report?-- J.C. from New York

James J. Cramer:

I still get my coffee at Dunkin' Donuts, but I believe Starbucks is an excellent company with one of the best brands on the planet.

It still has plenty of room to grow its store base in the U.S. and in emerging markets like China, and should continue to post earnings gains of about 20% a year.

However, that growth doesn't come cheap; the stock is trading at 40 times expected 2005 earnings. I'd wait for a pullback before stepping in.

What is your take on SanDisk (SNDK) ?-- A.C. from Ohio

Scroll to Continue

TheStreet Recommends

Image placeholder title

James J. Cramer:

I like SanDisk here. Flash memory plays are ripe to go higher because it's used in most of the white-hot consumer electronic products that I expect to be big sellers through the holiday season.

SanDisk is the best-in-breed way to play this trend.

Want more Cramer? Check out Jim's rules and commandments for investing from his latest book by

clicking here

. Learn how to become a better investor. Get started now with the investing rules that Cramer lays out: