Brand Name Values and Turnarounds Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Brand Name Values and Turnarounds

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Investor2 who wrote (47)	3/8/1999 10:52:00 PM
From: Michael Burry	Read Replies (1) of 82

I've owned MCD, and decided to unload half the position today. MCD has been making steady improvements with new management strategies. The street has been recognizing this, lifting it from the 40's to the 90's in relatively brief time for such an established, slow-moving co. I took advantage of part of this. Management believes it can regain and maintain 15% annual earnings growth. As any Buffettologist knows, that's all it takes to produce some pretty stratospheric valuations, making a PE in the 40's pretty much meaningless if the 15% perpetual is believable. But it has gone overboard IMO. With the market as high as it is, these are best of times for stocks like MCD, and I'm sure it will come way down when the market turns. And I don't believe that it can attain a perpetual 15%. BTW, I like BUNZ. I've liked it for a long-time, and despite the accounting snafu re: its franchising strategy that sunk the stock, feel it will make a good long-term hold from current valuations. What freaks me out is how very little they earn on each store per year. That goes with the high % franchises, I know. I don't have a position yet. Mike

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next