All companies are flawed. This company is making a lot of money and will continue to do so. We often say that this is an over reaction to the news but it is not. This is wall street cashing in on a short trade. This company was already knocked down knowing the high American dollar would hurt earnings and it still beat handily. The big money folks that already had a big short position kicked this down harder this morning with their trading millions. They are now covering via client's shares that they have for sale. It is a great gig for wall street. For the last 40 minutes the stock has sat between 77.10 and 77.25 just exchanging hands. Broker covering shorts with clients selling and losing on their longs. There is no squeeze permitted when it is their money.
They took this down rather quickly after a good earnings beat. Everyone knew revenues would be a little shy. The earnings beat was a plus. Think this is overdone and the shorts are covering here in the 77.00 to 77.50 area and will move on to any company to short and have another big payday shorting like AXP has provided.
Probably shouldn't reveal this but I had put an order in last night for this morning to buy if it hit 77.50.
Well now I have a thousand shares at 77.50. Didn't really think it would hit that low but thought that it would be a good price to get in. Still think it is a good price but 77 would have been better.
Was a beauty move by the shorts. Still in down trend. Little covering with their play money to take a few dollars off the table then back in shorting. Lower high, then another lower low. Folks saying shorts are done and it is still down around another 7% today.
MCD was a 100 dollar stock the beginning of 2012. It has since with this incredible bull market fluctuated between 80+ and around 100. Things are much more difficult for MCD now. This dollar raise that they gave to company owned employees is hurting franchise's and their earnings. This stock is going back to the 80's. Be patient. It doesn't go straight down. Some of the longs will think that is what is happening.
Short this as wall street. This is a great trading stock for wall street. When they are short jump on for part of the ride. You won't get all the trade but you can do well. They release earnings Wednesday morning and are getting a head start to the poor earnings.
So far today the volume is light yet no one stepping in to provide support. Has had a nice 1.60 pull back so far and continuing down.
Do think earnings will show slowing. It appears that MCD is trending in one of it's extended drops. I am not covering yet. Not as much a sell as on March 25 but still a sell. Competition is becoming too great and they are making some poor decisions in attempting to compete.
Will admit not happy regarding legalized stealing as it is always those who probably should not be trading that get hurt.
Wall street at it's manipulative best. Money is cheap so they will borrow money to buyback shares to give to themselves. Wall street gaps up the stock over 20 dollars. Legalized theft.
I read another report that shares that they missed by 8 cents which of course far worse. Now it is looking bad.
That is a significant miss when it was thought that they low-balled the new lowered estimates. Would think it goes down from here. That being said, maybe they give some positive news on the conference call. Not looking good at present.