CMG - Chipotle Mexican Grill Inc

Chipotle (CMG) is pulling back after a strong rally in May. CMG is a good long term buy down here.

 

With all the buzz over sanitary matters gone time for some steady growth.

 

That's pretty cool! All better than giving away free vouchers for no obvious reason.

 

Trading almost at the recent low and lower than the high in 2012. Next stop could be $325-350 range. If it hits that I'm going to be in. not yet though.

 

If you took the next four quarters of projected earnings is predicted that CMG will make about $7 per share if they meet expectations. One needs to use that as a "projected PE" since their last quarter they were negative EPS. At $7 earnings over 12 months they would have to sell at $150 per share to have a PE at the industry standard. Even their projected earnings for the next 2 years are all lower then the past 2 or 3 years so they have lost their luster as a growth stock and are nowhere near a value stock. I'm not saying they will drop to 150 but fundamentally it is certainly possible. The only savior I see for them presently is if they can significantly beat earnings over the next couple of quarters and have a few recognized analysts raise their future projections and price targets.

 

Don't see how they can compete with Trump Towers taco bowls.

 

looking at the monthly the $250-300 range looks like an interesting place to get in. I stopped going to Chipotle a couple years ago b/c I go to lunch at 11am (start at 6am) and Chipotle was always packed at 11am! Now it's empty. In fact, I was there yesterday around 11:30 and was greeted to two people in line. So it's great b/c I like their food, but based on past performance and how attractive they are now vs then, the locations are not as busy. NafNaf, Panda Express, etc have picked up on the quick service assembly line approach (thanks Mr Ford) and quick lunches are available at many other places now so I agree, best to let it settle down. Going to keep watching it.

 

http://money.cnn.com/2016/06/27/pf/chipotle-summer-loyalty-rewards-program/

http://www.chipotle.com/chiptopia

Oh, so there's a clear hierarchy of sauces now? Hot > Medium > Mild is it? If you use mild sauce, you're just a beginner burrito eater is the clear implication. This Chiptopia sounds more like a Fruitopia.

 

You're clearly not a buritto eater unless you use hot sauce.

 

Chipotle (CMG) is trying to break out ahead of earnings in a few weeks. CMG is a good long term buy below $400.

 

CMG going below $400 would be awesome. I'd reinforce my position and long it all the way. My absolute most favorite fast food stock.

 

Any takers?

The stock continues to hug the rising TL that dates back to the 2009 lows.
A few research notes have noted a slow recovery in sales.
EARNINGS TONIGHT.

To the upside, the stock needs to print and hold north of $433.
To the downside, $391 $356 and $323 are some level to watch for.

 

With reactions earnings in mind, and negative press, longs on CMG are naive. Morning gap down or failed spike expected

 

CMG 23% drop is sales. It's dropping hard. They are at 40 p/e with a bad outlook.

 

Needs to hold $433 in upcoming weeks to warrant the move we got on Friday. The good news is if the stock ends July at these prices, it would set a matching candlestick (possibly bullish engulfing) on the monthly time frame, temporarily halting a decline. Further, the stock broke above trend. The bad news is there are no catalysts to truly base a rally from.

To the upside, $494 is the level that needs to be reclaimed to re-instate the uptrend.
To the downside, $433, $408 and $392are some level to watch for.