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Bruce Schrader  

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  • Chipotle Mexican Grill: A Growth Story Without Much Growth [View article]
    The point was to find a company with a similar PEG ratio to that of CMG. As the PEG ratios are nearly equal the market is valuing the growth of CMG and AAPL similarly (admittedly CMG does have a lower PEG).

    Based on my views of both companies, as compared to the growth prospects of Chipotle I have more confidence in Apple's growth due to its substantial history. Therefore, if you agree that AAPL's growth is more certain, you should be willing to pay more for that growth. Given the small difference in their respective PEG ratios I don't think the premium on AAPL growth relative to CMG is reflected.

    Perhaps a industry peer would have been a better comparison, but I picked Apple as it is a darling in many peoples mind.

    Hope this helps.

    Jul 7, 2010. 09:10 AM | Likes Like |Link to Comment
  • Has Chipotle Peaked? [View article]
    I posted ( early questioning CMG's potential growth. I could not agree more that investors should be wary. People are health conscious to a point, but as prices increase traffic drops.

    The company already has seen a drop off in Same Store Sales and I question if this trend will reverse. Its only upside, is the company's ability to open stores (as far fewer Mexican grills exist as compared to McD's etc). However, by my math, CMG must be about at least double in size to account for its current valuation, at its current growth of 100stores/year that 7+yrs out (a long time in the investing world)

    great article, thanks for posting it.
    Jun 29, 2010. 10:15 PM | Likes Like |Link to Comment
  • Playing Frontline's Volatility [View article]
    I think i was looking at 31.5 and 36 when I was calculating the return, but the point is the same given the volatility you can fairly quickly make a pretty good return. And the 75cent dividend was a nice little bonus.

    I don't agree with you regarding holding onto it for its dividend yield. Given the volatility I don't see much of a point of holding it for the next two months, if you want the dividend you could probably wait closer to the Ex-dividend date and have your money elsewhere.

    Otherwise I agree with you. Thanks for reading the article and your kind words.

    My understanding of the the CEO pay is generally inline with yours, which adds to the discipline of the company and makes it such a nice company to follow.
    Jun 24, 2010. 06:28 PM | Likes Like |Link to Comment