Sunday, August 10, 2014

Recent Buys (MCD, AAPL, & PEP)

The following stock orders have been executed for this week:

2.11 Shares of AAPL @ $94.74 
1.11 Shares of PEP @ $90.29
2.14 Shares of MCD @ $93.55

Total Capital Invested-$500


  • Even with a growing trend for healthier food in the U.S and abroad; McDonald's continues to be a strong leader in the fast food industry. Part of McDonald's competitive advantage is that the company is recognized everywhere. Whether or not the food is "healthy"; their brand is as strong as it gets.
  • They strive for international growth and tailor some of the product offerings to fit the needs of respective countries.
  • With the slight pullback my opinion is MCD is a buy. I am bullish on it for 5 years and beyond. Plus, a nice dividend yield of 3.46% is another reason to rejoice. 
  • MCD management is doing everything right by expanding their addicting food into places like Russia, India, and China. McDonald's will be raking in the profits with the continued expansion
  • Even with a weakened economy, most people can still afford a burger.  

  • Besides being number 2 in the soda competition it owns stable brands like Gatorade and Frito-Lay.
  • Aquafina is a big hit in the bottled water market. As they make their way into new markets, they will tap millions of new customers! As the population continues to rise, so will their profit potentials.
  • Nineteen of Pepsi’s brands each generate retail sales of more than a billion dollars annually. Pepsi- Cola, Tropicana Juice, Gatorade, Lay’s Potato Chips, Diet Pepsi, Doritos, and Mountain Dew rank among the best-selling brands in U.S. supermarkets.
  • The analyst consensus for future earnings growth over the next five years is 9-11% annually, which strikes me as a mildly optimistic about Pepsi’s future.
  • Iphone 6 is going on sale soon which will add significantly to Apple's huge cash balance. 
  • With the current P/E being 15.3 they are relatively cheap and if any product they launch is a blow out success they will be significantly undervalued at today's price.
  • Persistent reports of new products in new areas, e.g. home entertainment and wearable technology. Iwatch is looking to be an innovative piece of wearable technology. 
  • The Iphones are really expensive but the customers pay a reduced price because they sign up for another 2 years of cell phone service through their provider. When customers are close to the end of their contracts, they will want the latest Iphone again from Apple. So Apple now has a great way to get repeat, regular business unlike many other technology companies. The Iphone was not only the first smart phone, it is also still what other phones are compared to. As long as Apple continues to be innovative, the company remains a BUY in my opinion.


  1. Are these purchases made through Loyal3? Just curious how you're buying fractional shares. All three should be good in the long term and AAPL is starting to interest me although I'm probably a bit late on that train. Nice buys!

  2. Yes, these were made through Loyal3. I want to keep buying AAPL before the price gets even higher. With the new products lined up, AAPL will probably soar past the $100 mark by the end of the year. Tough to not buy when everyone around me owns one or more APPL products including both my employers.

  3. Good buys here Dividend Mongrel. I especially want to get into PEP at some point. Your loyal3 portfolio is looking really solid so far, it's very cool you've diversified so well on such small amounts. Keep it up!

    1. Hey Ryan,
      Thanks for the compliment. It`s tough finding a good entry point for companies like PEP. This is one of the few companies I would pay a premium for. I am trying to build a solid foundation for the Loyal3 portfolio. I am very limited but I think I have chosen some very dependable companies so far. I just have to add to them. Thanks for stopping by!

  4. Mongrel,

    Like the buys. I hope MCD can get their act together at some point. They seem a little lost, but the business model and their exposure gives them a huge competitive advantage.

    Keep up the great regular buys!

    Best wishes.

  5. Hey DM,
    I agree MCD are definitely lost and that food scandal in China has helped with the recent dip. I plan on holding this stock forever and I am looking to keep adding to my position at these prices. Thanks for the support!

  6. Great buys. MCD is getting kicked in the guts but for long term investors like us it gives us a good chance to buy more MCD shares.

    1. I am happy that the price is in the $93 range. I would have easily paid $100/share so I consider this a great sale in the market right now. I'm going to keep buying shares under the $100 mark and I am hoping to accumulate up to 15 shares. Maybe more if the price keeps dipping lower. I am sure MCD will make a comeback and the dividend is a great addition to my portfolio.

  7. Div Mongrel, good purchases. I am long all 3 but really like MCD at these levels and have been adding.

    1. Hey AA,
      I wouldn't mind if MCD went down to like $90/share. Right now the price is at about $93 which is a great buying opportunity for anyone who wanted to add MCD to their portfolio. I thought about buying into YUM, but I need to do a little more research. The P/E for MCD stands at 16.94 which is lower than YUM at 26.58. I would like to see YUM go down to $65 before thinking of adding a position. Thanks for stopping by!

  8. All great stocks! I have PEP for years and recently bought MCD. Finally we have good price to jump in! :)

    1. I don't mind buying PEP at these prices because they are a great long term investment. I am hoping MCD will be open to new ideas in the future. People don't mind paying extra for healthy food. If they can come up with a menu for health conscience individuals like myself; I wouldn't mind eating there.

  9. Great buys Brian. I too added to MCD recently to take advantage of this current pullback. Although the company does seem a little lost like Dividend Mantra mentioned above with their ever increasing menu size, I'm betting they'll get back on track fairly soon and continue to be successful going forward. In the meantime it gives long term investors like us a great entry point to add some shares.


    1. Hey SFZ,
      I agree with what you have said here about MCD. I will keep adding to my position at these prices because I don't know if I will get a better opportunity. I was adding to my position when it was at the $100/Share price so the $93/Share is even better for me. Thanks for Stopping by!