CMG
- Thread starter vanzandt
- Start date
Acquired a lot of chipotle stock around 300 before earnings drop and recently more around 270. Very low risk for a huge bounce potential.
Hello Heavenskrow
Momentum is too negative for a "huge" bounce.
Of course, we should expect a dead cat bounce @300 dollars, maybe 310 dollars?
But this is downtrend, and the stock will fall again.
Expect 250 / 270 dollars after 300 dollars
CM
Chipotle starts search for new CEO
Nov. 29, 2017 8:08 AM ET|About: Chipotle Mexican Grill, Inc. (CMG)|By: Clark Schultz, SA News Editor
Chipotle (NYSE:CMG) announces that Steve Ells will become executive chairman of the company following the completion of a search to identify a new CEO.
Ells says his primary focus after the transition will be on innovation.
"The Board and I are committed to bringing in an experienced leader with a passion for driving excellence across every aspect of our business, including the customer experience, operations, marketing, technology, food safety, and training," says Ells.
Nov. 29, 2017 8:08 AM ET|About: Chipotle Mexican Grill, Inc. (CMG)|By: Clark Schultz, SA News Editor
Chipotle (NYSE:CMG) announces that Steve Ells will become executive chairman of the company following the completion of a search to identify a new CEO.
Ells says his primary focus after the transition will be on innovation.
"The Board and I are committed to bringing in an experienced leader with a passion for driving excellence across every aspect of our business, including the customer experience, operations, marketing, technology, food safety, and training," says Ells.
I half agree.
Obviously, this is a dead cat bounce, but even if you short it @ 296/297, it is still OK if you place a stop loss, let s say @ 303 dollars, because you can target 250 / 270 dollars. Reward risk is good = 27/6
By the way, same story for TTWO. If you got a stop loss above 120 dollars, the stock was shortable : 110 today, maybe 100 next week.
Just a question of reward risk.
CM
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The latest food scare has knocked CMG back again. https://www.cnbc.com/2017/12/20/chi...er-report-of-possible-food-safety-issues.html
Since Ells stepped down, the company is without a CEO.
Therein lies the opportunity.
As I see it.... Ackman will make damn sure they appoint a top CEO from the restaurant sector.
Damn near every stock in the world goes up big when a dynamic new CEO is announced.
That announcement will probably come in the next few weeks.
I'm gonna go out on a limb here and say CMG is a top stock pick for 2018 @ $289.
-vz
Since Ells stepped down, the company is without a CEO.
Therein lies the opportunity.
As I see it.... Ackman will make damn sure they appoint a top CEO from the restaurant sector.
Damn near every stock in the world goes up big when a dynamic new CEO is announced.
That announcement will probably come in the next few weeks.
I'm gonna go out on a limb here and say CMG is a top stock pick for 2018 @ $289.
-vz
Hmmmm.... Cowen disagree's with me. https://www.schaeffersresearch.com/...nalysts-options-traders-circle-chipotle-stock
I agree that Q4 sales are gonna miss. I've also noticed they've cut staff significantly. I was in one last week and they had 4 people working. One at the grill, one on the register and 2 working the line. Thats the second time in a month I have seen this. 2 for 2 on my visits.
They WILL lose business if this is system-wide and not some local anomaly. I won't stand in line and wait. They've always had lines, but if those lines don't move fast... people will walk out.
My call above is based on the announcement of a heavy hitter being appointed to CEO. It would be sweet if they could snag Easterbrook from MCD.... but that won't happen. Maybe the guy that turned Panera around. He's not working now.
So who knows.
For the record... Cowen downgraded FINL on 11/10/17 and its up over 60% since then.
___________________________________________________________
Cowen reiterated its underperform rating on Chipotle shares, predicting the company's fourth-quarter sales will come in below expectations."If Facebook check-in's are indicative of traffic, data suggests the most recent weekly trend weakened to the softest levels of 4Q," analyst Andrew Charles wrote in a note to clients Friday. "If 4Q same store sales fall below consensus expectations, we believe Chipotle will have difficulty credibly guiding 2018 comps to a level in-line with consensus forecasts absent a significant improvement in January traffic."Charles reiterated his Chipotle fourth-quarter comparable sales growth estimate of zero percent versus the Wall Street consensus of 1.4 percent.The analyst said the firm's analysis of Facebook check-in data revealed weaker traffic trends in the latter part of December. Facebook check-ins refer to when "users physically visit a restaurant and tag Chipotle as 'Have Visited/Were Here,'" according to the note."We note the most recent five days' -52.2% represents the weakest stretch of five day check-in growth in 4Q, with 12/27/17 (most recent date available) serving as the softest day of year/year check-in growth in 4Q at -56.4%," he wrote.Charles also reaffirmed his $240 price target for Chipotle shares, representing 19 percent downside from Thursday's close.The company's stock has significantly underperformed the market this year. It is down 22 percent year to date through Thursday compared with the S&P 500's 20 percent gain.
Chipotle did not immediately respond to a request for comment.
I agree that Q4 sales are gonna miss. I've also noticed they've cut staff significantly. I was in one last week and they had 4 people working. One at the grill, one on the register and 2 working the line. Thats the second time in a month I have seen this. 2 for 2 on my visits.
They WILL lose business if this is system-wide and not some local anomaly. I won't stand in line and wait. They've always had lines, but if those lines don't move fast... people will walk out.
My call above is based on the announcement of a heavy hitter being appointed to CEO. It would be sweet if they could snag Easterbrook from MCD.... but that won't happen. Maybe the guy that turned Panera around. He's not working now.
So who knows.
For the record... Cowen downgraded FINL on 11/10/17 and its up over 60% since then.
___________________________________________________________
Cowen reiterated its underperform rating on Chipotle shares, predicting the company's fourth-quarter sales will come in below expectations."If Facebook check-in's are indicative of traffic, data suggests the most recent weekly trend weakened to the softest levels of 4Q," analyst Andrew Charles wrote in a note to clients Friday. "If 4Q same store sales fall below consensus expectations, we believe Chipotle will have difficulty credibly guiding 2018 comps to a level in-line with consensus forecasts absent a significant improvement in January traffic."Charles reiterated his Chipotle fourth-quarter comparable sales growth estimate of zero percent versus the Wall Street consensus of 1.4 percent.The analyst said the firm's analysis of Facebook check-in data revealed weaker traffic trends in the latter part of December. Facebook check-ins refer to when "users physically visit a restaurant and tag Chipotle as 'Have Visited/Were Here,'" according to the note."We note the most recent five days' -52.2% represents the weakest stretch of five day check-in growth in 4Q, with 12/27/17 (most recent date available) serving as the softest day of year/year check-in growth in 4Q at -56.4%," he wrote.Charles also reaffirmed his $240 price target for Chipotle shares, representing 19 percent downside from Thursday's close.The company's stock has significantly underperformed the market this year. It is down 22 percent year to date through Thursday compared with the S&P 500's 20 percent gain.
Chipotle did not immediately respond to a request for comment.
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If someone would just get in there and kick the shit out of everyone, tell the line workers that they are getting a raise to $20 per hour, but they have to perform to keep their raise (and their job), things might turn around.
Why is running a business so fucking hard to understand? Especially a franchise.
What the hell is wrong with people?
You do your job, or you get fired. That's it.
And before anyone here cries havoc about the losers not getting a trophy and so will them be warped for life...Well, try it.
All these lazy jerks can bite my chod. Seriously. There is no excuse for a business failing when it is competitive, because everyone who solicits the business wants to be treated well and get a fair deal.
It is the lazy worker(s) who mess it all up. If you own a small business, do yourself a favor...Lose the water cooler.
Give them smoke breaks, yes! But lose the cooler man.
Why is running a business so fucking hard to understand? Especially a franchise.
What the hell is wrong with people?
You do your job, or you get fired. That's it.
And before anyone here cries havoc about the losers not getting a trophy and so will them be warped for life...Well, try it.
All these lazy jerks can bite my chod. Seriously. There is no excuse for a business failing when it is competitive, because everyone who solicits the business wants to be treated well and get a fair deal.
It is the lazy worker(s) who mess it all up. If you own a small business, do yourself a favor...Lose the water cooler.
Give them smoke breaks, yes! But lose the cooler man.