I could not have been more wrong about my SHAK diagnosis. After the earnings beat, considering 64% of the shares were sold short, I felt the stock was fixing to go on a gorilla run higher.
Wrong.
I misjudged the risk appetite, again. Truth is, SHAK is still trading 10x sales and the landscape for the restaurant industry is 100% shit, sans MCD. Who could’ve predicted that?
I am sure some cynics did.
So now the question that begs to be answered: where do we go from here?
Considering the stock is down almost 15 points since they last reported GREAT earnings a week ago (FML), I’d say this fucked face stock is bound to bounce off the concrete. The prognosis now is very dire, seeing the shares knife lower on a daily basis, despite a bright future in clogging the arteries of hipsters everywhere.
If it were to come in line with its peer group, on a p/s basis, the stock would trade down to $25. It’s also worth noting, the company is subject to fucked up Fitbit styled secondaries from insiders.
This market has become a dumping ground, a fucking junkyard, for VCs and founders to get rich quick–fueled by out of control private valuations and a complicit investment banking conduit to a naive public.
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Are you even contemplating shorting Square when it goed IPO?
A wise man once told me to stay away until $37.50. So I wait….
Their burgers are ok, Five Guys blows them out of the water though.
Their fries, and specifically their portion of fries, is ridiculous. You get more fries in a goddamn medium Wendy’s fry. There were so few fries I could have counted them had I wanted to. Their shakes are good. Healthy people do not drink shakes. They have some interesting wine deals with Napa wineries. Good idea. Nobody is going to buy that though.
I went to Shake Shack once and I will avoid it unless there are no other burger options. I will take it over I-95 style fast food, but if there is a Five Guys or something local I will choose that every single time. Not to mention their employees looked like they were hand selected from the ghetto to serve me my food.
They gave me like 24 fries. I fucking hate that place.
I’d have to agree with what you just said. I decided to try SHAK a little over a month ago and I don’t think it’s that big of a deal. I bought for the whole family (eight of us) and no one was impressed enough to request that we go back. My son made the statement that Five Guys is closer and better. Speaking of ghetto, did you happen to go to the one down in Miami, FL?
I went to the one in Cambridge, MA. Conveniently located if you are walking past it.
I drove by one of two Shack Shacks in my town on Wednesday at 7:00 pm, there was no line and it did not look full inside. Perhaps there are only lines at lunch? I was surprised.
“…naive public” – corrupt pension fund managers more like
Fundamentals mean nothing in a crapshoot market.