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Benjamin Smith, CFA, AIF®

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  • Growth Company Shopping List For A Declining Market: Part 2- Chipotle Mexican Grill [View article]
    Brant - good follow-up article from your previous CMG post. I'm continuing to get familiar with the company so I cannot poke any holes in your long-term thesis. Looking at the CMG chart technically, I'm a bit worried about the penetration of the 200 DMA and a struggle to find any support levels. The stock struggled to hold the $300 level ahead of earnings and looks weak again at $250. I think those that are patient with the stock will continue to find some attractive entry points at a more reasonable P/E.
    Oct 30 04:21 PM | Likes Like |Link to Comment
  • Chipotle Mexican Grill: Well-Managed And Growing, But Price Matters [View article]
    Brant - good article overall. I agree with your sense of the management's team ability to execute its vision in the marketplace. A week later than your article's publish date, another contributor posted the following: http://seekingalpha.co... . This is a serious charge against management and the board of directors in their interests being aligned with (instead of in front of) shareholders. When an investor sees this type of activity, it can quickly poison the shareholder base's faith in management. Corporate governance strength is correlated to performance of a company's stock. When weakened, investors tend to get out of the way and drive the price down. I'd be careful of multiple compression in this case and a sharper pullback.
    Sep 28 04:27 PM | Likes Like |Link to Comment
  • Chipotle Mexican Grill Feeling The Heat From Class-Action Lawsuits [View article]
    Great article! Many studies point to companies that are run with higher corporate governance standards make more investment return for their shareholders over time. This is a company that I'm not that familiar with but I'm happy to see your in depth look into their failures in governance. When a strengthened board structure appears, it will be interesting to see whether the stock's price rebounds and/or growth rates return.
    Sep 28 04:19 PM | Likes Like |Link to Comment
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