MCD is in big trouble. May not exist in 5 years

Today's trades. GLD options are equity covered.
Trades.JPG
 
Chris Mac said:
Man, just move on, this is not verylongterminvestor.com or onedayillberight.com.
Your short trade is dead, this thread is of no interest now.

CM
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What are you talking about? Is this site only for "short and get burnt and then get lost? "
None of my trades are dead. If you are looking for excitement and fun, trading is not for you. Profitable trades are very boring.
 
hajimow said:
Quality of food : very bad
Price: Not cheap
Competition: a lot of better restaurants for healthy and junk food lovers.

The down trend for MCD has started a while ago and it seems that new CEO is not the solution. Fighting with Taco Bell is not a solution. Now the news is that franchisees are not happy. I believe their result should not be good on April 22nd. While market is up today, MCD dropped more than 1%. Watch for a $5 drop in a week.
You cannot rule out the possibility of MCD being out of business in 5 years.
https://finance.yahoo.com/news/mcdonalds-broken-franchisees-furious-133644537.html
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Follow Up :

MCD at 114.51, up from 96.44 Return 18.7% plus dividend yield is 3.11% so over 20%
SPX performance in same time period = FLAT, down 15 points.

Conclusion :

A really bad call based on dubious research. Well into year 1 of the supposed 5 year outcome of going out of business.

Interesting Part :

OP started taking on bullish option positions on the way up ( selling puts ). Could it be that he is trying to create a market for his trades by trying to drum up a wall of worry about MCD ? Not that this site is much of a counter to what large funds decide to do with their money. Seems somewhat shady unless the OP can substantiate a large short position in shares that the options were merely hedging. Dubious that this is the case given the large positions taken with the power of short term options.
 
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Nine_Ender said:
Follow Up :

MCD at 114.51, up from 96.44 Return 18.7% plus dividend yield is 3.11% so over 20%
SPX performance in same time period = FLAT, down 15 points.

Conclusion :

A really bad call based on dubious research. Well into year 1 of the supposed 5 year outcome of going out of business.

Interesting Part :

OP started taking on bullish option positions on the way up ( selling puts ). Could it be that he is trying to create a market for his trades by trying to drum up a wall of worry about MCD ? Not that this site is much of a counter to what large funds decide to do with their money. Seems somewhat shady unless the OP can substantiate a large short position in shares that the options were merely hedging. Dubious that this is the case given the large positions taken with the power of short term options.
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You are talking to yourself. I think he left permanently.
 
noddyboy said:
You are talking to yourself. I think he left permanently.
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No I am still here. I am keeping a snapshot of my covered PUTs trades and hanging on there. I did not want to weekly post them to annoy some people !. One day I might re-post them here . What I know is that :
1- MCD sales in Japan tumbled 10% last month ( google the news).
2- MCD is selling bod to raise cash
3- MCD bonds are downgraded by two big credit aganecies including S&P
 
hajimow said:
No I am still here. I am keeping a snapshot of my covered PUTs trades and hanging on there. I did not want to weekly post them to annoy some people !. One day I might re-post them here . What I know is that :
1- MCD sales in Japan tumbled 10% last month ( google the news).
2- MCD is selling bod to raise cash
3- MCD bonds are downgraded by two big credit aganecies including S&P
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Yeah I agree, but there are some that see 3% dividend yield and think hey that is much more than I get in a bank...
 
noddyboy said:
Yeah I agree, but there are some that see 3% dividend yield and think hey that is much more than I get in a bank...
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Dividend is not free. They cut the stock price and pay you back as dividend. It is like taking money from one pocket and putting it in the other pocket. If the stock does not appreciate (in MCD case it has) in value, dividend is meaningless and sometimes dangerous.
 
Nine_Ender said:
Follow Up :

MCD at 114.51, up from 96.44 Return 18.7% plus dividend yield is 3.11% so over 20%
SPX performance in same time period = FLAT, down 15 points.

Conclusion :

A really bad call based on dubious research. Well into year 1 of the supposed 5 year outcome of going out of business.

Interesting Part :

OP started taking on bullish option positions on the way up ( selling puts ). Could it be that he is trying to create a market for his trades by trying to drum up a wall of worry about MCD ? Not that this site is much of a counter to what large funds decide to do with their money. Seems somewhat shady unless the OP can substantiate a large short position in shares that the options were merely hedging. Dubious that this is the case given the large positions taken with the power of short term options.
More...

I totally agree. Week after week, Hajimow tells everyone to short MCD, and at the same time, he is bragging how much he made with his short Puts????
Let s close this insane thread. Non-sense.

CM
 
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