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Alexander J. Poulos

 
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  • Illustrating Why McDonald's Is Undervalued At Its Current Share Price [View article]
    To all,

    CFO comment concerning bonuses. While our G&A increased for both periods in 2014, I want to emphasis an important point. McDonald's operates in a pay-for-performance culture. As such, short-term incentive pay outs for 2014 were zero for all corporate and U.S. employees. In addition, 2014 performance negatively impacted management's long-term incentive compensation."

    It is nice to see management is not being given bonuses after a lousy performance. I wish more companies would be as strict.
    Jan 25, 2015. 06:03 PM | 1 Like Like |Link to Comment
  • Illustrating Why McDonald's Is Undervalued At Its Current Share Price [View article]
    Rich,

    You are very welcome.
    Jan 23, 2015. 05:53 PM | Likes Like |Link to Comment
  • Illustrating Why McDonald's Is Undervalued At Its Current Share Price [View article]
    Rich,

    Actually tipping is not required, the table side service is incorporated into the price. If we think about it, RT for example charges $10 for their triple prime burger (delicious!!!) with fries, the drink and gratuity are extra. Assuming the quality is on par with the fast casual space, the CYT platform may actually disrupt the market a bit putting pressure on the better performing part of the sector. In essence this is MCD attempt to claw back lost market share.
    Jan 23, 2015. 04:50 PM | Likes Like |Link to Comment
  • Illustrating Why McDonald's Is Undervalued At Its Current Share Price [View article]
    LBP,

    The source is Susquehanna Financial Group, the analyst covering MCD is one of the best in the business. Keep in mind, the pricing will vary based on location, lower cost areas of the country the price will be less. Thanks for reading and commenting.
    Jan 23, 2015. 04:47 PM | Likes Like |Link to Comment
  • Making The Difficult Decision To Part Ways With BP [View article]
    Kolpin,

    No, I have removed GSK from consideration. I have lost faith in management for two reasons. The first is the ongoing scandal in China which exposes a lack of discipline in the enterprise. The second and far more important reason is there absolute ineptness in getting their Respiratory franchise preferred status for third party reimbursements. The drop in revenue for Advair last year is a direct result of refusing to offer a rebate to the PBM's who in turn made Symbicort the preferred product. I can tell from my experience I have had to switch over quite a few people from Advair to Symbicort.

    I was initially bullish on their prospects, expecting GSK new products BREO and Anoro to show positive revenue growth and begin to bridge the revenue shortfall experienced by Advair. The sales of these two products has been underwhelming to say the least. The only European pharma that I am currently interested in is Novo Nordisk due to their excellence in diabetes. An extremely well run company that pays an ever rising dividend while reducing the float. An opportunity may present itself this year where the shares will come under pressure due to currency concerns, if this does happen it will be buy and forget.
    Jan 23, 2015. 04:12 PM | Likes Like |Link to Comment
  • Illustrating Why I Choose To Invest In IBM Again [View article]
    jallard,

    After reviewing the conference call transcript, I interpreted it the same as yourself. I expect them to continue to repurchase shares this year, I suspect in February we will have further clarification at the investors day event. I really can't add anything further to the rumor mill, the one thing I will add is notice how the shares have performed after what many perceived by many as a disappointing earnings release. The shares have quickly regained the ground lost post announcement.
    Jan 23, 2015. 10:55 AM | Likes Like |Link to Comment
  • Gilead Sciences' Recent Trading Pattern Is Much To Do About Nothing [View article]
    6228371 and CSYJ,

    I suspect GILD will surpass JNJ market cap as the most valuable healthcare related company in the world. To achieve this feat it will need its lab to produce a viable treatment to NASH, akin to their HCV and HIV franchises. If this were to occur, the fears of an eventual revenue decline from HCV (due to it actually curing patients) will be ameliorated. See http://seekingalpha.co... for my review on the matter.

    In 2015, the two key events are the continuing evolution of the HCV marketplace with a close second being the initial data read on Simtuzumab. Positive results will help allay many fears on the company and will serve as a catalyst for the next move up.
    Jan 23, 2015. 08:40 AM | Likes Like |Link to Comment
  • Illustrating Why McDonald's Is Undervalued At Its Current Share Price [View article]
    Rich,

    Thank you for the comments. I agree with you, MCD is too valuable of an entity to allow to stumble for long. I suspect the CYT will fix not only the quality but the perception of the company.

    As for the bond alternative comment, in my opinion owning a 10 year Us treasury at a sub 2% is a far greater risk to your wealth than owning MCD. I simply do not believe we will see sub 2% inflation for the rest of the decade. Assuming we get a more normalized rate of say 3%, a bond holder will be locking in a loss.
    Jan 22, 2015. 07:57 PM | Likes Like |Link to Comment
  • Illustrating Why McDonald's Is Undervalued At Its Current Share Price [View article]
    rdtuck02,

    You are very welcome, thanks for reading.
    Jan 22, 2015. 07:55 PM | Likes Like |Link to Comment
  • Illustrating Why McDonald's Is Undervalued At Its Current Share Price [View article]
    BuyandHold,

    I would agree with your thesis that the market is overvalued if we had normalized interest rates. With the yield on a 10 year US treasury bond at a sub 2% rate, the dividend paid by MCD is quite appealing. I view MCD as a suitable bond alternative with a built in inflation kicker (annual dividend hikes). The shares don't need to outperform here (It would be nice!), just stabilizing revenue and rolling out CYT would make me quite happy. Thank you for reading and commenting.
    Jan 22, 2015. 07:02 PM | Likes Like |Link to Comment
  • Illustrating Why McDonald's Is Undervalued At Its Current Share Price [View article]
    Richard,

    Take a look at MCD revenues, gross margin and operating profits during the McCafe rollout which began in 2009. The program was a stunning success for the overall entity, individual results may have varied. Thanks for reading and commenting.
    Jan 22, 2015. 05:08 PM | Likes Like |Link to Comment
  • Illustrating Why McDonald's Is Undervalued At Its Current Share Price [View article]
    Daniel,

    No those are the expected prices here in the US. To be able to charge that the quality needs to be on par with RT, EAT etc, the beauty here is with MCD unsurpassed buying power they will have the lowest cost of goods in the field. Assuming the quality is the same they can launch a price war with the fast casual set and profit while they suffer to keep pace with MCD price point. The gains will be most pronounced in the evening, shoring up MCD weak showing during evening hours.
    Jan 22, 2015. 04:47 PM | 1 Like Like |Link to Comment
  • Illustrating Why I Choose To Invest In IBM Again [View article]
    mtairyinvest,

    Upon close examination of the balance sheet you will notice cash is building. The company is exiting unprofitable business lines while investing in other fields that are growing quite rapidly. I firmly agree that a share repurchase in the fourth quarter would have been quite helpful, management blew that one. I am anxious to see the level of buybacks that will commence this year and if the board authorizes additional capital to repurchase shares. IBM transformation is a slow one, only those who are willing to be patient here will make any money.
    Jan 22, 2015. 04:43 PM | Likes Like |Link to Comment
  • Illustrating Why McDonald's Is Undervalued At Its Current Share Price [View article]
    Sum,

    MCD can best be described as a yield play with the potential for additional cap gains if the CYT platform takes off. AAPL is a growth and income play who I am quite fond of (top 3 holding). I can't offer you specific advise, however I own both in a balanced portfolio. Thanks for reading and commenting.
    Jan 22, 2015. 04:27 PM | 2 Likes Like |Link to Comment
  • Illustrating Why I Choose To Invest In IBM Again [View article]
    maybenot,

    You have read my mind, I plan on writing a follow up article soon.
    Jan 22, 2015. 08:53 AM | 1 Like Like |Link to Comment
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