Priced for Perfection – Why This Burrito Market is Heading for a Fall
by David Stockman
David Stockman’s Contra Corner
During the 150 days since August 4th, Chipotle’s share price has plunged by 45%. Nearly $11 billion of market cap has been obliterated——including $4 billion in the last three weeks.
Accordingly, its market value has now retraced back to March 2012 levels. The hyperventilating CMG bulls who rampaged for 1250 days in the interim have now been taken out back and summarily shot.
Stated differently, what had been $12 million per copy burrito shacks are now on sale for just $6.5 million each and are heading far lower, very fast. But the culprit in this stunning markdown is not the alleged once-in-a-blue-moon outbreak of E. coli, as CMG’s apologists claim.
Continue Reading at DavidStockmansContraCorner.com…
Source: http://financialsurvivalnetwork.com/2016/01/priced-for-perfection-why-this-burrito-market-is-heading-for-a-fall/?utm_source=rss&utm_medium=rss&utm_campaign=priced-for-perfection-why-this-burrito-market-is-heading-for-a-fall
