Interested to know what you think. 2 years ago it was E.coli outbreak due to contamination, tainted food supply. This time, it was norovirus which is common and due to a sick employee. Norovirus is highly infectious but nobody dies from it and it could happen to any restaurant. There's a world of difference between E.coli and norovirus outbreak! I think there's an over-reaction to norovirus and mice in an old building. What do you think.
I have a horrible trading record. Almost certain negative returns over past 10 years. As I stated a few days ago. I doubled down on CMG at $326. Anticipating further declines which I will average cost with more buys. At $250 CMG is a great risk/reward. The rally today makes me think stock will now turn around before it ever gets to $250. Earnings may stink for another quarter or two but over long haul CMG is a cash machine (even if queso sucks). Also, avocados won't be forever expensive.
At 328 I'm going short with both fists.
CMG has a tangible Book value of $49.97/share, multiple food born illness disasters, and a current PE of 70.
I want to be a believer, but can someone tell me why I should invest in a company that can't get out of its own way even after a massive haircut, that still sports the statistics I just shared? I fear there are massive management controls issues that still are not fixed surrounding food handling.
On top of that, I'v been to the Chipolte in Ann Arbor a couple of times in the past month, usually around 1PM and you could have fired a cannon through it and not hit a soul both times.
Thoughts? I seriously want to be convinced why this is a company worthy of my investment dollars.
Looks like something is happening: Chipotle Shares Rallied As Much As 2.3% Over Last 10 Mins. As Traders Circulate Chatter Elliott Could Send An Activist Proposal To Co./Shareholders
Duke of Westchester
I am making my own burrito. I laid out the costs including guacamole. 78 cents total. Why pay over ten bucks too at Chipspotly? They had a price increase recently as well!
The latest headline is that they are considering getting rid of chorizo to make way for queso. They are flailing around desperately trying to grow, grow, grow. They'll end up damaging the brand even further by chasing impossible growth goals. They'd be better off recognizing they are a restaurant chain - one that still needs to put all their focus on food safety, supply chain, and management development - rather than an early growth technology company.
Besides a short covering rally, not much interest in $cmg. Volume poor, chart looking awful. My 316 pivot bounced and is now low. If you want to get long wait for $301s. We're probably within 60 points of fair value...Still bearish until Ells gone.
My guess is the pop today was someone covering their short position, because there is no carry through and they are giving it all back. Thanks though I shorted some more at 330.01
This is troubling. At ~1% loss per trading day, this can only keep going on for about 100 days. Should I sell now?
This is great day trading. I hope CMG keeps this up! Repeatable patterns showing up every day make for easy trading
Very worrisome it drops again, the biggest concern is that some institutions like Pershing Suqre can't bear to see the depreciation of their holding and throw in the towel.
still waiting for it to drop a 5-10% to buy
Shorties, please ask yourself, were everybody wrong in the past 4 years for valuing this from 400 to 700 dollars per share? Interested to learn your ideas.
Fair is fair
How should CMG management and Activist investor do to turn this around?
Instead of handing out sauce packets, they are switching to pepto packets for those moments when Montezuma's revenge hits. Why this stock is 300+ a share is a real mystery for a limited menu of garbage in a tortilla. Considered this stock to buy till I visited one in Nevada. High Priced Garbage. They didn't even wear hand protection while handling your order during lunch rush.
You know the company is a disaster when it needs to hire a "communications" director (spin doctor) for both external and internal messaging.
What a scam. The SEC should be looking into this stock. The fact that is still up is total garbage. The chart, The company, the valuation.... Really!!! this stock is maybe at best worth $20.00 and even that is a stretch! They are a #$%$ fast food joint. Even Mcdonalds is trading at half its value. Anyways it will at least go to 254 to start but from there seriously it MUST go below $100 for real investors to even look at this POS
This rationale for a buy at these prices is simple: They're making money with a fiercely loyal customer base, and they're still in their growth phase; not to mention the short selling is guaranteed future purchase volume. The earnings report should have been more than convincing, but time will tell. GLTA.