This was a quiet week for me on the site as I had some travel to NYC for a good portion of the week. Full schedule with dinners each day left little writing time. In fact, I am back there this week for some more meeting.
Looks like I might have found the holy grail research product that maps out the entire internet and maps all search and social media activity. Image channel check by the hour? Pretty cool stuff no doubt. I am going to see what they can produce for me on Chipotle and LinkeIn.
I will write more on this in the coming weeks as I get more up to speed on the this titanic shift in technology but for now I wanted to update on existing positions in Chipotle and LinkedIn.
Chipotle was recommended on April Fool’s Day at $465.15 and fell to $434.06 on Tuesday before climbing on an upgrade by JP Morgan. I can live with this as since mid March there have been 5 downgrades to this one upgrade. I am not playing for a $30 move to the downside. Rather I am playing for a “valeant move”.
I ventured into a Chipotle on 43rd and Fifth at peak lunch hour last week. It was busy but no line out the door. There was no one over the age of 40 in the place. They have lost that market. Earnings are due next week on April 26th after the close. The consensus is a loss of $-1.05 and revenues of $863.77 million. I expect a miss on both counts. That said watch for me to hedge the position with calls in case the stock takes off from here. Above $480 and I will use May calls to hedge the upside.
On to LinkedIn. In the last week, it has risen from $107 to its current price of $116.61. Thursday the target was lowered at Evercore from $155 to $135. Earnings are due on April 28th. Estimates are for $0.60 on earnings and revenues of $827.69 million. That said watch for me to hedge the position with calls like Chipotle in case the stock takes off from here. Above $120 and I will use May calls to hedge the upside.
Here is an update on my current recommendations, opened and closed on this website since I began to blog here in 2012.
Why’d you close out the SWHC short? That shit is going to 12 b4 year end