Soured on Chipotle
Let us first start out by saying we are not unhappy curmudgeons -- we don't argue with stocks that move higher in a parabolic fashion simply because we don't own them. We will admit we didn't quite benefit from the recent rally in Chipotle (CMG) either so, on an unconscious level, we may be a little frustrated. What we would like to point out in an objective fashion, though, is there has been a change. Change can be good or it can be bad -- but, either way, when it comes to stocks change is important to recognize.
The change we perceive in Chipotle is a negative one. It is also a short-term change, so we don't want anyone running out and dumping their Chipotle on account of us. What we would like to point out is the type of change in this stock usually precedes a decline, and there is potential at this point for a deeper pullback. We know the fundamental picture remains largely strong and intact. Growth is strong, sales are strong and, let's face it, who doesn't enjoy an organic burrito any chance they can get it? The negative we see is the price action has largely reflected these positives, as the stock has moved higher with little pause until recently....496 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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