Is it good time to buy CMG (margin, investment, stock)
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
If you have a very long-term time Horizon in mind I think it's a good investment here. They have a good balance sheet with very little in the way of debt which I always like to see in a company and theyre still adding new stores. However their profitability and profit margins are razor-thin so a lot of it will depend on their same-store sales among other things. It's not the most expensive stock in the world but it they do need to increase their profitability going forward somehow.
If you have a very long-term time Horizon in mind I think it's a good investment here. They have a good balance sheet with very little in the way of debt which I always like to see in a company and theyre still adding new stores. However their profitability and profit margins are razor-thin so a lot of it will depend on their same-store sales among other things. It's not the most expensive stock in the world but it they do need to increase their profitability going forward somehow.
This, however I have no clue how/if they will pull off the margin expansion. They lost a lot of customers permanently thanks to the foodborne illness crisis, which impacts same store sales, which is the simplest way to juice margins. A blockbuster menu item could do the trick, and they're trying, but chorizo didn't work and having tried the queso I don't think that will do it either. Last item is price increases, but they need to keep the most expensive items under the $10 psychological barrier.
Not on your life. This could drop to $40 a share before all is said and done.
If CMG went to $40 on valuation (rather than business) concerns without a change in the valuation of the broader market I'd sell my entire portfolio and go all in. I'd buy a small stake at $100. The stock is presently overvalued but it's not that overvalued. It does make profits. It is growing. It does have a clean balance sheet. Does it justify $270/share? In my opinion no, but that doesn't mean there isn't any real value there. There is.
CMG is down 14% today. Is it good time to buy the stock and get 2 or 3% move up by end of this week?
You really ought to plan where to get OUT before you start setting targets. At what price do you admit you are wrong? Typically people get all excited about how much they might make; if the trade fails they have no exit plan and end up with an "investment".
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
