Today, Jordan Zinberg and Stockchase Insights commented about whether BKNG-Q, NEM-N, MCD-N, GOOS-T, TVK-T, SIS-T, FN-T, PRL-T, CIX-T, PAY-T, CTS-T, AW-T, PZA-T, WELL-T, CJT-T, E-T, FAR-T, MTY-T, SHLE-T, LMN-X, MEQ-T, BDT-T, GSY-T, MCB-T are stocks to buy or sell.
Great business. Largest position in fund. One of the best financial stocks in Canada. Online lending business (small loans to consumers). Return on equity ~30%. Trading around 10x earnings. Expecting further growth in company. Reasonable valuation with good dividend and growth prospects. Would recommend buying and holding.
MCD reported an E. coli outbreak from its quarter pounder burger across 10 US states. The outbreak started between late September and mid-October. MCD has temporarily stopped using certain ingredients in affected areas. The stock fell sharply the day following the news, and it is currently down 5% (an $11B market cap loss) from just prior to the news.
We do not feel that the outbreak warrants an $11B loss to the stock, particularly over the long-term, but the stock has run up nicely over the past few months, and this could partially be profit-taking in conjunction with the news release. We would prefer to see the stock find a floor before entering a position, but over the long-term, we would be comfortable holding the name.
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Does own shares. Is a great investment. Well run business with good management. Excellent balance sheet with expanding margins. Could be a good takeout target.