My current take on Chipotle Mexican Grill (CMG) and Groupon (GRPN). (March 02, 2013)
CMG GRPN CMG
I’m Dan Fitzpatrick at StockMarketMentor.com on Saturday, March 2nd. In this Free Chart Video we’re going to look at a couple stocks, both of which we looked at last week; and that is Groupon ( $GRPN Groupon Inc ) and Chipotle Mexican Grill ( $CMG Chipotle Mexican Grill, Inc ). First of all this is a $320.00 stock. Now a lot of you are going to look at that and say, “Well, $320.00, show me something that’s $30.00 or $20.00 or $3.00, because that’s the stuff that I want to buy, because you get more shares.” Well, look, this stock ran up almost $3.00 on Friday, almost a one percent gain. What’s the difference if you buy ten shares of this stock at $319.00 versus a hundred shares of $31.90? You still get, here, a one percent increase. So don’t get so focused on the number of shares that you can trade. Instead, be focused on the trend, be focused on this uptrend here, be focused on this volatility squeeze right at the 200-day moving average; watch for this stock to break higher. The market, I go into a lot of detail on this in the Weekend Update, but the market is in this primary uptrend and so you really want to be long stocks, you don’t want to be betting against the market. I think Chipotle ( $CMG Chipotle Mexican Grill, Inc ) is going to work for you if you just stay long. Now Groupon ( $GRPN Groupon Inc ), again, “mea culpa,” I issued a, you know, buy the dips here on Groupon ( $GRPN Groupon Inc ) on Wednesday. Embarrassingly, I was doing that video after the company announced earnings and was trading way down. Now happily, at least one guy in our Community Forum said, “Hey, don’t feel so bad for totally blowing this call because it brought my attention to it and I made a nice day trade, made a lot of money off of this bounce.” That’s our 59 Minute Trader curriculum where you really learn how to day trade or I should say, hour trade in the first hour of trading. If you’re the type of person who actually has a regular job, particularly if you’re on the West Coast, you can get up, trade these trades, these hour long trades, and then go to work, and then try to match what you made in the market with what you’re going to make that day at the office; anyway, enough about that. With Groupon ( $GRPN Groupon Inc ), where are we now? Well, so they fired their CEO, they fired him on Friday; the stock fell down on Thursday. So what happens on Friday? Well, the stock gaps up a bit and it closes almost 13 percent higher. I don’t think this is much of a buying opportunity. The big deal with Groupon ( $GRPN Groupon Inc ) is business model. Do they have one? Do they have a profitable one? You know there are a lot of folks that are a lot smarter than me that say they really don’t. and because the market is strong there are a lot of other places to put your money if you’re a money manager or an individual investor. There are a lot of better places to put your money than in some goofy stock like Groupon ( $GRPN Groupon Inc ). Again, I thought this thing was going to move higher; it would have been a nice trade, not the case. I think that nice trade actually already happened on Thursday and into Friday. I would be very careful about buying Groupon ( $GRPN Groupon Inc ), and by the way, this could drift up a little bit more. Perhaps you buy Groupon ( $GRPN Groupon Inc ) on Monday, make another 30 or 40 cents before supply starts kicking in and the stocks drifting lower. But I guess my question is, do you really want to waste your time? I shouldn’t say waste your time, if you’re making money you’re not wasting your time, but do you really want to spend your time doing that? I would rather watch a stock like Chipotle ( $CMG Chipotle Mexican Grill, Inc ). This stock traded as high as $319.82, set your price alert at $320.00 so it will draw your attention to it or the upper Bollinger Band here, $325.00. Set a price alert at $320.00, $321.00, maybe again at $325.00; the last high here was $327.00. Well, I would say that if the stocks hitting $325.00, that’s the upper Bollinger Band, that’s a pretty good confirmation that this stock’s going to continue to drift higher. So anyway, I hope that helps; I hope you enjoy the rest of your weekend. Free Chart