Share
642 Posts.
lightbulb Created with Sketch. 52
clock Created with Sketch. 05/06/18
12:03
Share
Originally posted by CaptainBarnacles
↑
I'm biased as I shorted them (again) Monday, and have been thinking about the downside asymmetry quite a bit. But I don't think the market is overreacting. It isn't about today's earnings and dividends, but about their future earnings and share of the pie, and the size of the future pie itself IMO, and size of future dividends.
Expand
Even if hypothetically the allegations regarding exploitation of franchisees eventually turn out to be unfair (and i'm not saying that they are) the reputational damage has been done, and MOC will have trouble attracting new franchisees for the foreseeable future. The question from the perspective of an investor is that when the smoke clears and the knife finishes falling - will the eventual market price under value the business? We shall see.
