What a difference five months can make. Back in January, McDonald's (NYSE: MCD [1]) was trading at $102, thanks to 2011's strong 34% rally, and more and more investors were excited to step into what looked like a well-established ride up.
Looks can be deceiving...
Not only did the rally not continue, but as of two weeks ago, shares [2] of the world's biggest restaurant chain have actually lost 11% of their January peak, with no apparent floor in sight.
What happened to McDonald's to merit such a reversal of fortune for shareholders? That's just it -- nothing really happened to the company. The stock simply took on a life of its own.
For investors who understand that a stock's price can sometimes disconnect from the company's actual performance, these wild swings can represent outstanding entry and exit opportunities.
In fact, that window of opportunity is open right now. (more)
No comments:
Post a Comment