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.
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!
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?
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?
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.
Share buybacks this morning can't keep her propped ... sub 320 by close
IMPORTANT EQUITY ALERT: Lundin Law PC Announces Securities Class Action Lawsuit against Chipotle Mexican Grill, Inc. and Reminds Investors with Losses In Excess of $100,000 to Contact the Firm Today 3:17 PM ET (GlobeNewswire)Print
Lundin Law PC, a shareholder rights firm, announces a class action lawsuit against Chipotle Mexican Grill, Inc. ("Chipotle" or the "Company") (NYSE:CMG) for possible violations of federal securities laws between February 5, 2016 and July 19, 2017, inclusive (the "Class Period"). Investors who purchased or otherwise acquired shares during the Class Period should contact the firm prior to the September 18, 2017 lead plaintiff motion deadline.
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No class has been certified in the above action yet. Until a class is certified, you are not considered to be represented by an attorney. You may choose to do nothing and be an absent class member as well.
According to the Complaint, throughout the Class Period, Chipotle made false and/or misleading statements and/or failed to disclose: that the Company's purported improvements in its restaurants' food safety policies were inadequate; that Chipotle's quality controls were still not in compliance with applicable consumer and workplace safety regulations; that the quality controls remained inadequate to safeguard consumer and employee health; and that as a result, Chipotle's public statements were materially false and misleading at all relevant times. Upon release of this news, Chipotle's stock price fell materially, which caused investors harm according to the Complaint.
Lundin Law PC was established by Brian Lundin, Esq., a securities litigator based in Los Angeles dedicated to upholding shareholders' rights.
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I know what the bear thesis on CMG is: the current valuation is majorly bloated, same-store sales show signs of weakness, the brand's image is (perhaps permanently) tarnished, the food supply chain and cooking methods are described by Barron's as less secure than those of McDonald's. What's the bull thesis for a return to '15 valuations of CMG? So far I just see the hallmarks of faith-based investing. Some say to fire the CEO, but why isn't that just changing deck chairs on Titanic? Some hope for a buyout, but while the balance sheet looks good, CMG stock trades at a very high multiple. Why wouldn't a prospective suitor wait for another drop in the stock price to buy? At the same time, Chipotle's food is nothing to write home about. I had it many times before the E. coli issues. It was decent, but somewhat overpriced for what it was. Shake Shack justly claims making a terrific burger and breakfast sandwich. Chick-fil-A makes a wonderful chicken sandwich. Chipotle's food is, all things considered, pretty mediocre and now tainted by past scandals.
So CMG bulls, let's hear it: what's the argument, by the numbers, for your optimism that CMG stock will return to 2015 levels?
Fair is fair
Back up the truck and buy! You will thank me for this. Ackman has an average cost of 425/share.
Question to the longs? Where is the $1.2 billion of share buybacks?? In your brokerage account? How's that dividend? Where is the growth? Avocados (mexican) continue to crush margins. Raising prices will fix that problem. Prices inelastic. Spicy cheese will solve it, hold on tangy cheese already been around 200 years ...
At this point Shipotle can rally but $499 is a looong way from here. $388 overhead resistance and $316 price support.
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.
RATS and Viruses make good combination.
Really want CMG to tank hard so I can buy more and hold forever.
My last 10 trades have all been losers. On an epic losing streak. Doubled down today on CMG at $326.4.
You know it's easier to get on an out of gas bus going downhill with no brakes than to stand in front of it hoping it will go back up. Instead of complaining, sell and go short, when it hits bottom cover and go long. Take pride out of the equation and make some money.