If you compare McDonals to McFocus the thing that you should immediately note is that while McDonals is a price maker Mcfocus is a price taker.
McDonals increases the price of its end product when it judges to be opportune to do so like, for instance, when its margins become affected due to price increases in its inouts, as it did recently in Australia while Mcfocus cannot increase the price of its end product at all. If Mcfocus margins become seriously affected let God help them because nobody else will.
The other thing is that when you buy shares in McDonals you can expect a certain return (dividend) coming to you on a regular basis with a low risk of your expectations not being fulfilled while when you buy shares in Mcfocus the same does not apply. In short in the former case you are investing and in the latter case speculating as the expected return to be derived from 10c, 20c, 30c or $1 per share is dependent on factors that are extremely difficult to predict.
FML Price at posting:
5.1¢ Sentiment: None Disclosure: Not Held
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