Kelly: New positions in MCD, TKC

Includes: MCD, PKX, SHAW, TKC
by: Thomas Kelly

Monday morning I added two small new positions in (NYSE:MCD) and (NYSE:TKC). As readers might have noticed, I’m using the market turmoil to establish positions in a number of quality names with bigger market capitalizations. My buys of (NYSE:PKX), (SGR), and now MCD definitely fit into that category, and while everyone else is fretting about recession, I’m attempting to plan for the post-recession. We’ve already made plenty of money on put positions on the S&P, and frankly, I don’t think there is much money left to be made trying to play recession fears. Therefore, I’m taking the other side of the trade and buying small positions in quality companies at discount prices. McDonald’s at $50.65, down 7% despite their impressive menu changes and store renovations, sounds to me like a discount.

In addition, I bought a rather small position in TKC at $22.02, which has a very attractive valuation and huge potential for growth over the next several years. This is not just a Turkey play, but a play on expansion into parts of the former Soviet Union (Ukraine) as well. To my mind, you have to buy these emerging market plays when everyone is scared of them, and people are definitely skittish about emerging markets in general and Turkey in particular at the moment.