Starbucks Corp SBUX shares are making new 52-week lows on Tuesday, and one investor with high conviction in the name just keeps on buying.
What Happened: Hightower Advisors' Stephanie Link decided to add to her Starbucks position on the pullback.
"This is what I do. This is my process: I buy quality on sale," Link said on CNBC's "Fast Money Halftime Report."
What Makes Starbucks Attractive? Link is placing her trust in returning Starbucks CEO Howard Schultz. She expects him to turn the company around before appointing a new CEO to carry Starbucks into the future. Starbucks scheduled an analyst day for September, which will be led by Schultz. Link believes the event will be a catalyst for the stock.
Starbucks also removed $20 billion from its buyback program, which Link views as a positive as she sees the company using the cash to invest in its products, people and places.
"In spite of all the problems the company has had, they've had above-average U.S. same store sales growth and that's really very impressive," Link said.
Why It Matters: Link just bought Starbucks shares last week following the company's quarterly report. At that time, she noted that she would continue to buy Starbucks shares on weakness, which she did on Tuesday morning. Furthermore, Link reiterated her comments from last week.
"When I start a new position like Starbucks that I did last week, I actually bought small, and I said at the time I probably would be adding over the coming weeks on any weakness if we saw it ... down 38%, the stock is trading at the low end of its historical multiple. It may go down further, but I'll be buying it down further if so," Link said.
SBUX Price Action: Starbucks has traded between $73.33 and $126.32 over a 52-week period.
The stock was down 1.74% at $72.21 at press time.
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