Do you really think anyone is going to be buying now at $20 over today's close? The valuation didn't make sense at $250...it really doesn't make sense at $280. All the buying this past week was the smart money. I guarantee the smart money will be out with a quick profit in coming days. The stock has risen almost $100 since last earnings call. They sell burritos for christ sake. I would rather own Apple at a 20x P/E vs. a company that makes burritos at a 50x P/E. Does anyone really think that CMG has more growth opportunity selling burritos than Apple does selling the iPad or the next best technology they can dream up?
CMG is a good company, but this is a pure momentum play. Think Boston Market and Krsipy Kreme. I am not sure when it falls, but it is inevitable.
There's a huge difference in tech compared to a food company. This is a new trend with more room to grow. It doesn't matter what you think about 50x or whatever. It's all about growth! They are growing and hasn't reached their peak yet. Soon, of course, they will just like anything else. Now as far as Apple is concerned, it's tech with much much more expense to pay their employees, RND and so forth. It has much more overhead costs than the just making burritos. That's why CMG is where it is. ck
Yes Mexicans eat burritos but they dont at Chipotle. They eat them at the local Taquiera or street vendors. You guys are trying to us logic in this particular market. Logic and technicals are for down markets and low v stocks. Enjoy the ride on this pure momentum stock and watch out for the bottom to drop out. May not be soon but it's coming. Now break 280 %#%$ it!!!! I'm long on this sucka!