Silicon Investor (SI) -- The First Internet Community

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.

Non-Tech : Cramer Touts -- Ignore unavailable to you. Want to Upgrade?

To: David Bogdanoff who wrote (170)	8/26/2005 6:25:40 PM
From: Carl Worth	Read Replies (2) \| Respond to 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