You're not missing anything. It is, as you say, an act of desperation. Thompson knows shareholders are screaming for his head. MCD has been one of the worse performers in the DJIA, and I'm sure the BOD isn't too happy.
This scheme strikes me as an act of desperation to get the stock price moving. Piling on debt to pay the money back to shareholders makes absolutely no sense, IMO. Apple did the same thing, but they had such a huge hoard of untaxed cash sitting offshore it made sense, sort of. MCD is expanding faster outside the U.S., so the unrepatriated cash reduces the need for more borrowing. My guess is that MCD will sell off when the whole picture gets clearer and folks realize what's going on. This is just an attempt at smoke and mirrors to fool investors into thinking they're getting something for nothing. Hmmm... this reminds me of an "economic stimulus" situation.
Give Thompson credit where credit is due. He's an excellent operations guy. He knows the nuts and bolts of the company inside out. However, he's not the visionary that MCD desperately needs to continue to grow in an increasingly competitive environment. On a short term basis, he's not responsible for the bad weather. But he is responsible for some of the bad moves the company has made recently. The only thing that can save his butt would be a big surge in the stock price. Is the move today sustainable? I sort of doubt it. I don't see anything fundamental to account for it, but it couldn't have come at a better time for Thompson.
After hitting a new all-time high of $127.37, AMGN is now about 124.50. I don't see anything to account for the sudden collapse on an otherwise up day for the market. AMGN has a habit of doing this, and it can be very disconcerting. With an earnings growth rate that is about half the P/E, I expect AMGN to under-perform the overall market. Using my rule that the growth rate should equal the P/E ratio, AMGN should be selling for about $70.
Thanks. Both of these have management fees that are more than double that of POAGX, and they're both strictly biotech funds. I need more diversification than these one-trick-ponys offer. POAGX charges a 0.69% management fee which is substantially below the sector average. I steer clear of any fund that charges more than 0.70%, so POAGX is at the top end of my acceptable range. Also, I tend to be a very long term investor, so I don't switch in and out of sectors as they got hot and cold. Right now, biotech is THE place to be, but that won't always be the case. POAGX has extremely small turnover, so they don't incur a big tax burden on the shareholders. I've been in AMGN since 1987; just to give you an idea of my investing time frame. AMGN is one of just a handful of individual stocks I still own. I've been switching almost entirely to mutual funds for the sake of simplicity when I die.
This was never reported in the paper. I was told by a store employee that the prepared-foods section was found to be "filthy" and unsanitary and that a big crew of cleaners was brought in to do a top-to-bottom over night cleaning job. The Health Dept came in to inspect before the store was allowed to reopen the following day. The store employees are under strict orders not to say anything to anyone about the whole thing.
If you like the biotech sector but also want diversification, take a look at POAGX (Primecap Odyssey Aggressive Growth Fund). Up around 55% for 2014, it has an amazing track record that has been greatly boosted by their big biotech holdings. No load, no 12b-1fee, relatively low management fee and tax-efficient philosophy has tripled my money in the past 5 years. Just an idea you might want to take a look at. Primecap also manages the VHCAX (Vanguard Capital Opportunity Fund) that was their top performing fund for 2013. VHCAX is closed to new investors, so the POAGX makes an excellent substitution.
Since the Health Dept shut down the Stamford store for sanitation violations and made them do a top-to-bottom scrubbing, their image has been badly tarnished. This stock is on the "damaged goods" markdown rack with the rotten apples and moldy cheese.
I'm wondering how many restaurants McDonald's has in Ukraine. This might be a good time to buy a franchise there to feed the Russian troops when they take over the whole country. McDonald's food is probably the closest thing they can find to Russian Army food, but it's probably not as good.
When OPK breaks out above $13, the masses of shorts will see one of the great squeezes of all time. It's only a matter of time. When, not if. The fix is in. There's no way of knowing how far it will run, but these things have a way of getting totally out of control. Even the most ardent longs might be shocked. Short squeezes have a habit of feeding on themselves. The looming catastrophe that awaits the shorts if they delay covering will cause great weeping and wailing and gnashing of teeth.
Despite the strong market, MCD is tanking big time on the ex-dividend date. Looks like folks are taking their 81-cents and running for the hills. We won't know the results for awhile, but a whole lot rests on the kind of reception the re-introduced wings get. My guess is that wings will be history once the freezers are cleaned out. It was a bad product, a bad idea, and an embarrassing fiasco for this incompetent, over-paid management. If they would spend less time flying around the world on the company jets and more time running the business, the company might be salvageable. Maybe.
MCD has been a pathetic laggard near the bottom of the DJIA performance list. By any measure, this company is in big trouble. They've run out of room to increase the dividend by any meaningful amount. Annual increases in the dividend are down to less than half of what they were in past years, and future increases will likely fall even farther behind their historic rate. MCD desperately needs new top management to streamline the company, cut expenses and stop making mistakes like wings. Every dog has its day, and MCD has had theirs. Even the advertising photo of their wings looks about as appetizing as something my dogs left on the grass last summer.
Wrong. I am not short MCD or any other stock for that matter. I took a big profit at par and got back in around 93. I'm LONG, LONG, LONG 4000 shares.