I am bearish on CMG in a short term sense. Story/fundamental/technical wise
Technical: The price has breached the 200 Weekly SMA and shows weak price action. I am expecting a drop but I am unsure where it stops.
Fundamentals: CMG is over valued and based on classical valuation based on DCF, CMG's fair value is at $288. Which is a big drop. In terms of PE and PS it is undervalued as well. However, since it is a growth stocks and it assumed that earnings are used for growth, EV/EBITDA still shows decent valuation of 14
Story wise: Many would have known about the e coli scare and causes a drop on stores sales. Though as a food scientist this food scare is actually very small. However, due to fear (funny enough from wall street) the stock may see further decline.
For short term players CMG is a good short but once there is a good time I will get long since it is a favourable food restaurant and also have big room for growth.
Technical: The price has breached the 200 Weekly SMA and shows weak price action. I am expecting a drop but I am unsure where it stops.
Fundamentals: CMG is over valued and based on classical valuation based on DCF, CMG's fair value is at $288. Which is a big drop. In terms of PE and PS it is undervalued as well. However, since it is a growth stocks and it assumed that earnings are used for growth, EV/EBITDA still shows decent valuation of 14
Story wise: Many would have known about the e coli scare and causes a drop on stores sales. Though as a food scientist this food scare is actually very small. However, due to fear (funny enough from wall street) the stock may see further decline.
For short term players CMG is a good short but once there is a good time I will get long since it is a favourable food restaurant and also have big room for growth.