Our SVA Charts are powerful market tools for many reasons, but one of the most useful aspects of our charts is that they can identify stocks that are incredibly overvalued. When we find such stocks, we do deep dives into the company to see if the fundamentals support the picture that the chart is showing.
Last year we saw that McDonald’s was tremendously overvalued and did a deep dive. What we found was astonishing. In the research document below, titled No Exit, originally published in March of 2019, we outline exactly why the stock is tremendously overvalued, and what the ultimate downside target for the stock may be. While the stock has moved since our initial assessment, all the fundamental arguments remain as valid as ever, and with the stock breaking down from all-time highs, it may be the case that this is the beginning of the end.
Click on the link below to download our full report.