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Non-Tech : Cramer Touts
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To: David Bogdanoff who wrote (170)8/26/2005 6:25:40 PM
From: Carl Worth  Read Replies (2) of 843
 
IMHO those two rationales are the same thing said different ways

in one case you own MCD and its earnings growth is enhanced by its chipotle division, so your investment benefits by a stronger E in the P/E equation, and possibly a stronger P due to a faster growth rate

in the other case (after the spinoff) you would own some MCD and some chipotle, and while MCD's multiple isn't likely to decline as long as they perform, the real benefit to your investment would be the higher value given to chipotle, due to its stronger growth...in that case you could even sell MCD and keep or add to chipotle

all of that said, i still don't see MCD as a buy anywhere near the current price, just not enough growth to be attractive, even if chipotle pumped them up a bit
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