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darmbru2

darmbru2
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  • Offer for Allied Nevada was fake [View news story]
    I don't believe that there is any suggestion of fraud... It may have been premature, but the prima facie evidence suggests that they do intend to try to buy the company: (1) extremely low price to acquire mine (2) the confirmation from CB Capital as well as the semantics used in their letter and follow up email (3) the company had been on a recent rise suggesting that the they went against their legal counsel and issued the offer early before it could go up any higher in value...
    Jan 14 03:47 PM | 1 Like Like |Link to Comment
  • McDonald's: Free Cash Flow Calculation Indicates Up To 36% Overvaluation [View article]
    The long term grow rate of 3% seems reasonable. I think that Tom already hit on the cost of equity as being too high for the industry... 100 BIPS on the terminal value makes a BIG difference. Although it won't make much of a difference, I think MCD has a pretty solid business model that can withstand longer than three years of accelerated growth. They have prime real estate that allows them to continue to grow faster than 3%. As far as the qualitative side, you would be surprised when you speak with the franchise owners. Many of the healthy items are literally garbage that they pitch. People may enjoy the idea of "healthy options," but the sin of grease is as addicting as anything Altria can rollout. MCD has the best system and real estate; these two things make MCD's model tough to replicate.
    Aug 29 03:04 AM | Likes Like |Link to Comment
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