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Chipotle Mexican Grill, Inc. (NYSE:CMG)
Google Finance ^ | July 20, 2012 | Staff

Posted on 07/21/2012 3:51:29 PM PDT by Cplus

-$86.88

(-21.51%)

(Excerpt) Read more at google.com ...


TOPICS: Business/Economy; Crime/Corruption; Government; News/Current Events
KEYWORDS: chipotle; crash; fraud; market
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The crash in this stock occurred after Thursday's close and before Friday's open. In a global market where the major model for governments, central banks and businesses is fraud, we can reasonably expect to see more of the same in currencies, commodities and stocks in the coming months.
1 posted on 07/21/2012 3:51:39 PM PDT by Cplus
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To: Cplus

Probably Chipotle had a lot of trouble making money when they were forced to give up illegals and had to hire American citizens.


2 posted on 07/21/2012 4:01:06 PM PDT by jjotto ("Ya could look it up!")
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To: Cplus

Then, too, it was wildly over-priced relative to the earnings growth that was reported. CMG was a roller coaster waiting to drop.


3 posted on 07/21/2012 4:01:17 PM PDT by Pearls Before Swine
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Comment #4 Removed by Moderator

To: Cplus
Oh, please. CMG has been a momentum player's darling stock for a couple of years. Lo and behold, the revenues didn't increase (never mind the earnings) in the past quarter and the future estimates of same weren't in line with expectations. And the share price got crushed, and deservedly so.

Ever heard of Boston Chicken, Snapple, Krispy Kreme? Guess what, THE VERY SAME THING HAPPENED TO THEM: the mo-mo boys ran them up to the sky, relative to actual hard-dollar value, then they missed earnings or revenues targets, then ... blooey. Food and food service stocks and restaurant chains can only become bid SO high, and then, speaking both practically AND historically, look out below! Where have you been, laddiebuck?

Note to traders: Chipotle shares will likely rally in the short term, but they've a devil of a lot further to fall. I would strongly suggest looking at buying long-term put options, more or less at-the-money, on any rally.

Good trading to everyone!

5 posted on 07/21/2012 4:07:56 PM PDT by SAJ (What is the next tagline some overweening mod will censor?)
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To: Pearls Before Swine
Indeed. See post #5. Not to mention that the 20-day MA crossed the 50-day to the downside some little time ago.

There is still $100-plus to the downside, but there will very likely be vicious short-term rallies in the near term. "Momentum", or whatever the Street is calling it these days, is NOT a permanent feature of ANY share price, ever.

6 posted on 07/21/2012 4:12:32 PM PDT by SAJ (What is the next tagline some overweening mod will censor?)
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To: Cplus

I’m surprised they lasted as long as they did.

It only took one visit for me to swear off Chipolte forever, after paying top dollar for a terrible burrito that consisted of a tortilla filled with rice that was it for me.

But living in Arizona, i don’t have to put up with overpriced crap whose only resemblance to real Mexican food is that it’s rolled up in a tortilla. I guess most of the rest of the country doesn’t have any better options than the faux-Mexican garbage that Chipolte sells.


7 posted on 07/21/2012 4:20:16 PM PDT by RatSlayer
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To: Cplus

That is what happens when you offer up an overpriced yuppie version of Mexican food......


8 posted on 07/21/2012 4:21:37 PM PDT by Donkey Odious (I can explain it to you. I can't understand it for you.)
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To: RatSlayer

Great minds......I’m in Texas....


9 posted on 07/21/2012 4:23:19 PM PDT by Donkey Odious (I can explain it to you. I can't understand it for you.)
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To: jjotto
Probably Chipotle had a lot of trouble making money when they were forced to give up illegals and had to hire American citizens.

Bingo.

10 posted on 07/21/2012 4:23:39 PM PDT by thecodont
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To: Cplus

Restaurant-chain stocks always do this. They grow to the sky and then crash. The restaurants get old, there are few barriers to entry, and new competitors come along.

You want good stocks that don’t crash, pick industries which are hard for new competitors to enter. Oils, utilities, cigarettes.


11 posted on 07/21/2012 4:37:01 PM PDT by proxy_user
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To: Cplus

This sounds like one Obama built.


12 posted on 07/21/2012 4:42:44 PM PDT by Iron Munro ("Jiggle the Handle for Barry!")
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To: RatSlayer

Ditto that! Once was enough for me also.


13 posted on 07/21/2012 4:45:03 PM PDT by Clay Moore (The heart of the wise inclines to the right, but the heart of a fool to the left. Ecclesiastes 10:2)
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To: RatSlayer
We have better Mexican food here in Georgia, too. The Chipotle I went to here wasn't any better than Moe's.

I went to one in Alexandria VA that was packed, but they don't seem to have any good Mexican food there.

Unfortunately, some of the best taquerias around here have closed down since GA passed our illegal immigration law and our construction industry took a dive.

14 posted on 07/21/2012 4:51:01 PM PDT by Trailerpark Badass
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To: proxy_user

“Restaurant-chain stocks always do this. They grow to the sky and then crash.”

Well put. That’s why I never buy restaurant stocks. The majority of my BUYS are long-term holds.


15 posted on 07/21/2012 4:51:39 PM PDT by MplsSteve (General Mills is pro-gay marriage! Boycott their products!)
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To: SAJ

Thanks for mentioning Krispy Kreme and ruining my weekend. lol!


16 posted on 07/21/2012 4:52:11 PM PDT by Kahuna
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To: Cplus
In a global market where the major model for governments, central banks and businesses is fraud, we can reasonably expect to see more of the same in currencies, commodities and stocks in the coming months.

That's quite a stretch to explain a drop in a stock price.

17 posted on 07/21/2012 4:54:48 PM PDT by BfloGuy (The final outcome of the credit expansion is general impoverishment.)
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To: Cplus

Here in NM, I had 2 carne asada tacos yesterday (at my awesome little dive mex restaurant) that filled me up for the whole day and cost less than $6. Fortunately, the restaurant didn’t have waterfalls and live mariachi music and I am the winner in that deal.

It is tough to compete with these little Mexican joints that are good. You need to be so much better and that is hard to do.


18 posted on 07/21/2012 4:56:13 PM PDT by MAKOTHEDOG
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To: Cplus

How do you pronounce “Chipotle?”


19 posted on 07/21/2012 4:56:32 PM PDT by Neanderthal
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To: Neanderthal

The guy started in a little store near Denver University..


20 posted on 07/21/2012 4:59:24 PM PDT by Hojczyk
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