If I sell DAVE & B I need a Food/ Entertainment play and you hated that casual dining stk I found. D&B did just buy Main Event. But if you DISLIKE it I'll sell.
Hi Stoney.
Lol... which one was it I hated? There's been a few. DriveShack? I love the place, it's just that the stock was way overpriced. It's a great concept and a fun time. Golf, games, food , beer, hot waitresses... what's not to like? But buying a business is no different than buying say... a used car. Would you buy a 2010 Chevy Malibu, even in perfect condition with hardly any miles, for $175,000?
Of course not. That's how I look at stocks. DriveShack was great, it was just too expensive. Turns out I was right, in 4 years it has went from $8 to $1.30... all the while meeting every expectation the company has put forth. Like I said, great place.
Soooo...
PLAY is ok. I don't hate it, but if there's a better stock in the sector, why not go with it?
Now pay attention here Stoney...
See if you can catch that segment on CMG (Chipotle's) Bloomberg just happens to be running this weekend. It's pretty good. "Bloomberg Chief Futures Officer".
DVR it if you have one, I just checked its on in the middle of the night tonight, or make it a point to watch at
11AM est tomorrow. It will make you appreciate that stock, plus it's a great look at the fast-casual business and the various challenges they face in our brave new world.
Now I know you and you'll say "Van CMG is too expensive", since for whatever reason the reality that percentage movements in a stock's price levels the playing field where the rubber meets the road is still a foreign concept in StoneyLand, ie a 2% move in 40 shares of PLAY is the same as a 2% move in one share of CMG.
BUT>>>> I have a feeling Chipotles is gonna do a big split soon, maybe 10:1>>> and
you really need to get in on that before its announced.
Now obviously a pecan pie cut in 8 pieces is the same size as one cut in 32 pieces, but if ever there was a stock that would run on the exuberance of a split, even more-so than TSLA or AMZN....
its Chipotles.
But there's more.
CMG still has huge huge growth ahead. Huge. I've said that for years here, and finally, that Bloomberg segment explains why.
Lets look at the PEG ratio's between the two:
Sure, CMG is way more expensive, but look at the charts and think about the future.
Think about a 10:1 split and the millions of Millenials and gen Z'rs that love CMG. Think about their growth in digital. Think about the fact that they own every store, no franchisee's. Think about their core values as it applies to their supply chains. Happy farms, happy animals, happy everything.
So Stoney to answer your question... yes... sell play and buy CMG. For the long haul.
PLAY>>> $46
CMG>>>>$1600
(Maybe wait for a pullback to below $1500)
