Prepare to read 500 articles about Starbucks (SBUX) today

By now you've heard the news about Starbucks Corporation (NASDAQ:SBUX).  They are closing 600 U.S. stores, 12,000 employees will be fired, and after hours yesterday the stock jumped 7%.  Today, its 50 cents above SBUX shares 52-week low.  A lesson in saturation Corporate America.

If you build it, doesn't mean they will come. 

Starbucks said that 500 locations, as well as 100 others it slated for closure earlier this year, will shut down during the remainder of this year and the early part of next year. The company said as many as 12,000 full-time and part-time retail positions will be eliminated with the store closures. That figure amounts to 7% of its global workforce.

SBUX now will only open less than 200 new stores in 2009, down from 500 new openings. 

All for the stock price.

The curse for U.S. corporations lately, and our 401k's for that matter.  If your stock price is suffering, you have to make cuts, at all cost for the company shares.  Starbucks shares have been killed in the last few months, the chart says it all:

So how much will the cuts impact the bottom line and should you buy shares now?

I like the views from Minyanville.com for this call:

From the Bull Pen: SBUX shares are higher in the pre-market. Those that believe this is a positive move for the company can play the upside; sell-stops can be set below $15.30.

From the Bear Cave: Bears looking for a downside play can look elsewhere such as Papa Johns (PZZA). The stock broke its uptrend from January. Buy-stops can be set above $27.

At least SBUX is taking steps to increase shareholder value but as trading continues today shares aren't even up 1%.

Wall Street has to get behind Starbucks for shares to really increase.  They need upgrades and target prices raised by the analysts covering the stock.  Barron's would need to write something positive about them, or maybe Liam Mulcahy the 'hedge fund' guy can help them about via SeekingAlpha.com

SBUX is taking the right steps for would-be investors, but if planning to cut 7% of your employees can't make the stock jump 1% in normal trading, what can move it?

Discliamer: No positions in SBUX.