CMG, Chipotle Mexican Grill

CMG july 2011

Last Febr. this stock looked like it needed to go higher, but not by too much , perhaps $290. Now that we are at $340 it is definitely a sell. One possibility is that there was a “running triangle” wave 4. I am not even sure if that is a legitimate pattern. In any case we are exceeding the confines of the channel. The stock is up 8-fold in 2.5 years. Again this begs the question whether or not we are already in the next bubble. The stock is trading at a rather modest 56 P/E, yield is non-existent. If it is topping a drop of $120 is a minimum.