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