This blog provides analysis, advice, trade ideas and other happenings. I frequently publish research at major investing websites. The most featured sectors on this website will depend on what is currently trending and hot in the market.
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Thursday, September 6, 2012
Tuesday, September 4, 2012
McDonalds going vegetarian...could be good for stock!
US fast food giant McDonald's, famed for its beef-based Big Mac burgers, on Tuesday said it will open its first ever vegetarian-only restaurant in the world in India next year.
The world's second-biggest restaurant chain after Subway already tailors its menus to suit local tastes -- which in India means no beef to avoid offending Hindus and no pork to cater for Muslim requirements.
It will open its first vegetarian outlet in the middle of next year near the Golden Temple in the Sikh holy city of Amritsar in northern India, where religious authorities forbid consumption of meat at the shrine.
"It will be the first time we have opened a vegetarian restaurant in the world," a spokesman for McDonald's in northern India, Rajesh Kumar Maini, told AFP.
After the opening in Amritsar, the US chain plans to launch another vegetarian outlet at Katra near the Vaishno Devi cave shrine in Indian Kashmir -- a revered Hindu pilgrimage site that draws hundreds of thousands of worshippers a year.
It sees the potential for many more vegetarian restaurants across the country.
McDonald's in India already has a menu that is 50 percent vegetarian.
Its McAloo Tikki burger at 28 rupees or 50 cents -- which uses a spicy fried potato-based patty -- is the top seller, accounting for a quarter of total sales.
Among the chicken-only meat offerings, the Maharaja Mac is also a favourite.
Currently India, with its population of 1.2 billion, is still a "very small market for McDonald's", said Maini.
"We have just 271 restaurants in India and across the world we have nearly 33,000," Maini said.
The chain serves half a million customers a day in India, out of 50 million people it serves daily in over 100 countries.
"When you look at the potential of the country, it's one of the top priority countries and we're laying the groundwork for capturing the market," said Maini.
"We plan to nearly double the number of outlets to 500 plus within the next three years," he said.
McDonald's realised soon after it entered the country that it had to rework its international menu to Indian tastes.
"The reasons were very compelling -- cow slaughter is not allowed because of religious reasons and we couldn't do pork either," Maini explained.
Hindus, who account for 80 percent of India's population, regard cows as sacred. For Muslims, the consumption of pork is prohibited in the Koran.
"It was the whole idea of going local and creating flavours that would create acceptance for us," Maini said. "We had to look at the whole market innovatively and we realised only chicken-based and vegetarian food would work."
McDonald's is not alone in "Indianising" its offerings. Domino's Pizza, another leading fast food chain in India, has created pizzas with extra spicy toppings.
But growing consumption of food high in fat is spurring concern that India is importing the Western disease of obesity, creating a ticking public health timebomb.
Sunday, September 2, 2012
Market holiday tomorrow
Reminder there is a market holiday tomorrow, no trading on the American Exchanges
Saturday, September 1, 2012
The Miners Have Outperformed Gold And Silver; 3 Stocks That May Outperform Platinum
Those who follow precious metals have likely taken note that gold is trading at a higher price than platinum recently. This is historically very rare and thus suggests to this author that platinum may soon rebound above gold prices. Since the mid 1990s platinum has generally traded 50% to 100% higher than gold. Right now platinum currently trades at $1516 an ounce whereas gold is now trading at $1660 an ounce. Although platinum is up approximately 13% this month, I think the current run up may have just begun. I have thus recommended considering adding physical platinum to your portfolio or investing an ETF such as (PPLT) in addition to owning physical gold and silver or the ETFs (GLD) and (SLV).
In both the gold and silver space I have been recommending investing in individual miners as a third-line approach, behind owning physical assets or the GLD and SLV. While the GLD, SLV and PPLT are up 2.2, 10.9%, and 7.5 % respectively in the last month, the miners of these metals have been outperforming the metals over the last month. Gold and silver miners as measured by the (GDX) and the (SIL) are up 8.3% and 11.9%. To my knowledge the one ETF that tracks the price of platinum miners is the (PLTM). This index in my opinion is to be avoided as ....READ ARTICLE
Speculative Stocks For Those Who Believe Silver May Outperform Gold This Year
Speculation is always an interesting discussion. Right now there are a lot of unanswered questions driving the price of precious metals this month. Will the Fed step in and initiate yet another round of quantitative easing? Will the European Central Bank really do all they can to save the euro? Will China organize a soft landing or will it come down hard? Will the Republicans truly fight for some sort of gold standard in the United States? Have we reached so called peak gold? Will silver return to its historic 16 to 1 price ratio relative to gold? All of these questions are being asked by precious metals traders and their subsequent answers will impact the short and mid-term price trajectory of the metals.
Regardless of the answers to all of these questions, one thing remains certain to this author; the long-term trajectory of the prices of precious metals is up, and thus speculation with a small portion of your portfolio in this space may not be a bad idea. I have suggested that silver could outperform gold in the next 12 months and thus recommended playing some of the larger players in that metal. My readers know that I have been adamant in my suggestion to own physical assets in these metals. For those investors that cannot or will not buy physical assets, I have pointed to the ETFs that track the price of metals as a second line approach. I recommend....READ ARTICLE
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