Option Investor
New Plays
HAVING TROUBLE PRINTING?
Printer friendly version
New Plays
Long Plays
Short Plays
CMG None

New Long Plays

Chipotle Mex.Grill - CMG - close: 56.40 chg: +1.44 stop: 53.74

Company Description:
Chipotle Mexican Grill offers a focused menu of burritos, tacos, burrito bols (a burrito without the tortilla) and salads made from fresh, high-quality raw ingredients, prepared using classic cooking methods and served in a distinctive atmosphere. Through our vision of Food with Integrity, Chipotle is seeking better food not only from a variety of fresh ingredients, but ingredients that are sustainably grown and naturally raised with respect for the animals, the land, and the farmers who produce the food. Chipotle opened its first restaurant in 1993 and operates more than 530 restaurants today. (source: company press release or website)

Why We Like It:
The early October breakout higher in CMG was not just a breakout on its daily and weekly charts but also a bullish buy signal on its Point & Figure chart. CMG's strength pushed the stock through P&F chart resistance and the buy signal now points to a $74 target. We believe the bounce on Monday (and Friday) now looks like a new entry point to go long the stock. CMG has spent about two weeks digesting the earlier October surge and retested broken resistance as new support. We're suggesting positions now with CMG above the $56.00 level. Our short-term target is the $59.90-60.00 range. More aggressive traders may want to aim higher but we plan to exit ahead of the October 31st earnings report. We're placing the stop just under Friday's low.

Picked on October 23 at $56.40
Change since picked: + 0.00
Earnings Date 10/31/06 (confirmed)
Average Daily Volume: 900 thousand
 

New Short Plays

None today.
 

Premier Investor New Play Archives