Full Disclosure Finance

By Andrew

In my last post I disclosed a stock purchase of 25 shares of McDonalds (MCD). As I explained in the post I happened to pick a day that the stock got hammered after, in my opinion, a very wishy-washy downgrade. I said that I was going to use the weakness in the stock to load up some more as it goes down. On Tuesday January 15th I purchased another 10 shares at $54.30 adjusted for the trade fee. I now hold 35 shares of MCD at an average cost basis of $56.01 per share. The stock has continued to decline in the days after the downgrade. The overall weakness in the market hasn’t helped matters and I think a lot of people are getting skittish at this point. I still believe McDonalds will continue to perform even if we are headed for a…wait…don’t say it…RECESSION…ohhh he said it. The reason I didn’t buy another 25 shares as I said I was going to is because all indications point towards further decline and I want to be able to purchase more at the lower prices.

McDonalds closed today at $52.40 up slightly after a number of down days. The next level of resistance for the stock is around $50. I believe the stock will get there and when it does I will load up on some more. This is the hardest time to stay focused when everything seems so negative but I believe there are great opportunities out there for long term investors. For me the growth story at MCD hasn’t changed and unless it does I’ll be a buyer of these dips.

Check out this great post at Seeking Alpha about McDonalds. Aparrently I’m not the only one who disagrees with the skepticism surrounding MCD.

Check back for more updates soon.