But won't they have to guide for Q3 in the CC after this quarter? I guess they could BS us but you would think they would have to give some inclination that growth is slowing? Even if they blow out this quarter, but give soft guidance I would think that it takes a big hit. - PJ
Actually, really big money knows that the market will tank long before CMG can grow into its overhyped valuation... and it knows the real underlying growth as CMG is slower than headline numbers suggest...
That argument holds for companies not already priced to perfection.
Hey Tech... Here's some common sense bro.......
Know why CMG didn't crack $400 yesterday? Read the above post again. #2
The 'real' big money knows we are heading north..... bigtime. The CMG can will be kicked down the road on inorganic growth alone(is that the right term for new stores addition to the bottom line?). Shorts and put buyers are gonna lose.
I ain't been wrong yet. This is no different.
I have no doubt that the markets will front run the Fed until it stops giving the market its crack. If and when it does, the crash is ugly. I'm in Jan2013 options... folks are going to have to keep it up for a long time.
There are plenty of stocks that will rock in the Fall. CMG just isn't one of them...
Q3 will be the tough comps quarter, not Q2.
They began with price increases in Q2 of last year, but only covering a fraction of their footprint (and only late in the quarter, iirc).
If the P/E hasn't compressed much by late October, that's when it will happen: that's when the market will see YoY comparisons without a price increase boost.
Agreed. They beat 1.94 with 1.97 and sold off. Id wait for a pump week before earnings and sell an in the money call spread or buy a put spread.
Change in the accounting estimate is handled prospectively. This adds to the bubbles.