Chipotles…Adios Amigo?

  • Posted by
  • on February 15th, 2008

It looked like I would be stopped out of my last bit of Chipotle’s this morning. It was upsetting for sure because I have owned it from day one and been blogging about it pre-IPO. There must be 100 posts where I have mentioned it . With it’s close back above $104 I will keep it and use today’s low as a final stop.

It has been such a great ride and I have even traded the beast well, chronicling it along the way. One of my biggest winners where I just could see and feel the stock higher.

The stock was overvalued the day I paid up $20 post IPO and felt screwed. That was at $40. I sold along the way up and when I sold some at $108 and $130 was bummed to see it hit $150 plus. That’s the way it is with the best growth stories.

It’s a perfect case study for a growth and momentum stock . The growth is still early, but the momentum is gone. You need to separate that or you give back all your profits.

If the growth continues, I think it will, the momentum will return. In the meantime, the market’s mood will have to get better and the market stronger to carry the multiple it carries for a restaurant stock. Not that complicated.

PS – This was such a good Wallstrip. Looking forward to seeing Lindsay back sometime soon on her new web show for CBS Moblogic.tv

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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