Extra

   Hi everyone, I just feel like writing something today, a stock purchase. This may just be a replacement for every week's "stock purchase" section. I'm not letting myself write something I don't mean next week so... here's the extra stock purchase for this week.

Stock Purchase: McDonald's Corp (MCD)
McDonald's have been beaten down quite a lot in recent weeks, down to a price below $90, down to a price which will be acceptable to me already. I have had this stock in my portfolio before but have sold it already. This stock is re-entering my portfolio. Just some qualities I like about this company. It is the biggest company in it's industry, Restaurants, at 91B. It is a brand well-loved not only by me, but by many other people in the world. People are willing to pay S$8 or even S$10 for a set meal at McDonald's. Its food, is obviously great. The management are remarkable, the company has a ROE of 38% and it has a dividend of 3.12%. It also has a quarterly sales growth rate of 7.12%. Its expansion in counties like India and China, places where the middle class is growing a lot,will ensure that it gives strong sales and revenue numbers in the coming years. Now, back to its price. At a P/E ratio (Price/Earnings) ratio of 16.7, it is acceptable and even attractive compared to competitors such as Chipotle Mexican Grill (CMG), with a P/E of 54, Dunkin Brands (DNKN) with a P/E of 62 and Wendy's (WEN) with a P/E of 56. The only thing I dislike about it is its Long term Debt/Equity ratio of 0.82, which is too high for my liking. Overall, this is a good buy for me now and I would add some shares of this to my portfolio, and would buy some more soon, no matter whether its share price increases or decreases.

Another stock: Yum! Brands Inc. (YUM)
I'm not planning to buy this stock now, but will buy in a pullback. I have bought this stock last year when it was in its 50s and sold it already. It has a P/E ratio of 21.4 and a ROE of 77%. The numbers are great too. I will not go too in depth about this one but it owns the brands KFC, Taco Bell and Pizza Hut, two of which are popular in Singapore. Like McDonald's, its expansion in Africa, India and China, will ensure it gives strong numbers in the years to come. Although it pays a mediocre 1.7% dividend, I like this company a lot. Its Long term Debt/Equity ratio is 1.4, an uncomfortable number for me. Overall, all that is holding me back from buying this one is its price.

Disclosure: I am long DIS, T, KMB and will intiate a position in MCD on Monday