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.
![[Image 1]](https://ibankcoin.com/ggarbacz/wp-content/imagescaler/ddcd53f1a26d333534b932310ca4557a.gif)
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.
![[Image 2]](https://ibankcoin.com/ggarbacz/wp-content/imagescaler/8a89a4132d0aa9dc0cad27d8a70b27e4.gif)
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.
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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.