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Stupid Stock Move of the Day! No Panera sell-off?

June 5, 2012: 1:02 PM ET

Starbucks (SBUX) is getting into the bread business. While the $100 million purchase of La Boulange Bakery in San Francisco is a relatively small deal for the king of coffee, I am a little surprised Panera (PNRA) investors aren't more worried about the implications of Starbucks setting its sights on baked goods.

Panera's shares were down as much as 3% Tuesday morning before rallying as the day progressed to near break-even status. But Panera seems like the type of company that would be ripe for a pullback on concerns about more competition. Shares trade at nearly 25 times 2012 earnings forecasts. That's ... uhh ... a lot of dough. (Sorry! Couldn't resist.)

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Paul Lamonica
Paul R. La Monica
Assistant Managing Editor, CNNMoney

Paul R. La Monica is an assistant managing editor at CNNMoney. He is the author of the site's daily column, The Buzz, and also tweets throughout the day about the markets and economy @LaMonicaBuzz. La Monica also oversees the site's economic, markets and technology coverage.

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