earnings gambles are very difficult to do well, its generally better to focus on relative strength and post earnings drift moves. i do gamble earnings sometimes but its typically something i already own from weeks or months prior and hopefully have a paper gain on already going into the report.
and maybe when the next earnings comes out, your theory will be confirmed but until then its just speculation.
this is just the way the market works, sometimes when a company reports good earnings, there is a continuation drift higher after the initial move up. this has always happened in the market. to question whether the market should work this way seems pointless to me. and yes CMG reported good earnings even though they missed, that is possible too.
same store sales trends are usually the key thing to watch with retailers. i focus on what the market focuses on, thats how i stay with the trends. As for the market i think this rally has at least several months left in. Certainly at some point there will be a correction but i dont think it will be very deep.
most recent quarter comped at 18%. is that virtually flat? maybe you are looking at this differently but if you are it is in a way that isn't relevant.
honestly you are pretty much screwed. leave trading to the pros and stick to your day job.
the earnings were pretty good but not great. i think the market is looking past this and WSTG can rally just on valuation expansion even if there isn't a great growth story to get excited by. and 5% yield is nice while we wait.
could work but i think they will most likely expire worthless
the shorts on the CMG board. they are just so special aren't they? i love all their cute little theories about why they are not just feeble minded fools that have no clue what they are doing in the market.
you obviously weren't around for 1999 then. nothing that has happened since then is anywhere near what was experienced then.
i have traded cmg occationally over the years, i never shorted, but i like trading retail stocks and cmg is good for continuation moves after good earnings. based on the previous earnings and the high relative strength of the stock, i bought in at $400. Holding through earnings is not something i always do but i thought it was worth the gamble in this case. My advice to the shorts is that you need to find something better to short but if you are going to short CMG then be patient. CMG may sell off eventually but it won't be soon, its not going to happen next week (unless you are only looking for a few points). For CMG to die in a way that is independant of what the market is doing, you will need new negative material information to come out. That would be earnings but thats not till early February. All other boilerplate short reasons like, "the food sucks", or "its not healthy", or "its easily replicated", etc. None of these things matter. They did not matter on Friday, they did not matter a month ago, a year ago, 5 years ago, so why would they matter on Monday or at any point in the near future? They may matter eventually but until they do begin to matter they won't matter at all so forget about all that. 95% of what will matter in the next few months is what the stock market is doing, perception of fast casual restaurants in general, and CMG's next earnings. If CMG comes out with surprisingly bad same store sales next quarter then shorts win, good job, but you can't really win until and if that does happen.
in a taste taste, im not sure that i could tell the difference. they are both good so the reason i prefer chipotle is partly that i wasn't so happy with the service ive gotten at qdoba. the chipotle that is local to me i visit regularly and i like the people there. i don't eat animal products so chipotle and the like are one of the few places i can eat out.
why is that hard to believe? most people like cmg more then qdoba otherwise qdoba's same store sales wouldn't suck so much and then they wouldn't have to be closing stores.