December 18, 2012
We are adding Chipotle Mexican Grill (CMG) to our Morning Matters Portfolio which can be found on www.superstockinvestor.com as it just moved into a short squeeze for the first time in two months. There is some great upside on our stock scorecard and the technicals are finally starting to improve.
There is nice earnings growth as the company is expected to earn $8.89 this year and $10.41 in 2013. That is growth of $1.52 or 17.09%. The P/E will drop from 33 to 27 in the next year.
The Erlanger Weekly DMA (yellow chart) has now seen the stock price move above it which is a nice confirmation and the Erlanger Crossover Spread is in aggressive but not confirmed buy. We note the short ratio is above 5 and short intensity is elevated.If you enjoy the content at iBankCoin, please follow us on Twitter
I like the CMG call
I love trades where shorts overstay their welcome. Last time I checked they are packing them in. Nice fact the highest grossing Chipotle is where I live in Madison WI . Why? Because it is on the UW Campus at State Street and they serve lots of food on Friday and Saturday night as the students chow in between beers.