Wall St. Cheat Sheet

Wall St. Cheat Sheet
Contributor since: 2009
Company: Wall St. Cheat Sheet
This post is a joke. Cost of customer acquisition is rising. Anyone can get subs to pay less than the cost of acquisition.
Angie's List has the potential to be an epic failure for IPO investors. Read the details of their SEC filing. It's all classic Wall Street smoke and mirrors.
With all due respect to Jeff, these "reasons" are extremely weak. Here are a few things he should research:
1) how many units Chipotle has and how many would actually be market saturation outside his experience in NYC.
2) Chipotle's foods are organic and fresh. Sure, an entire burrito is 800 calories, but most people only eat half at a time. That's a huge amount of quality food for what Jeff considers an expensive $8. Try eating lunch at Whole Foods and that will look like a major bargain for the same amount of high quality food. Not to mention, customers are not a current problem for CMG.
3) The narrow menu is what makes the concept brilliant on the back end. Chipotle is able to keep their food super fresh and keep costs low because they focus their menu. Definitely not a problem. And I don't know about most people, but when I want a burrito I don't need to have 50 other options. Mexican food can be simple. That's part of the appeal.
4) PF Changs is an absurd comparison for CMG. Really? Any decent hedge fund would laugh that one out of the room.
In conclusion, the only truly researched and valid point here is the high P/E. But once you look up how many units Chipotle has built and how many more the world can handle (and let me give you a hint: YUM and MCD are decades ahead in their buildouts), you'll note the growth PE can last for many more years.
Contrarian is cool, but so is diligence.
Here's why Apple doesn't move:
It's over-subscribed. Every fund in the world owns it.
Stocks move on supply and demand. Apple faces a MAJOR demand issue.
That's in-house council speak for: we screwed up, but we're telling our bosses it's someone else's fault.
They don't call something the Holy Grail for nothing. It's a myth.
My sources say they use Twitter as a contrarian indicator. Meaning, it's the newest way to take money from the herd.
Reminds me of the Lehman ghost town deals.
I just referenced your comment in my new post:
Will a Free Netflix Subscription be the Death Knell for Cable/Satellite?
bit.ly/fUSotj
Thanks for the thoughtful discussion.
Damien
Agreed.
Shocker. This was BS from the beginning, as anyone who does M&A would know.
That is a great thought. I think the only issue at this point is ramping up infrastructure to deal with a huge user jump that would occur if they also had free. They are already having issues with Akamai.
But I think your idea is on the way. Just a matter of time.
Wow! They must've been up all night. LOL
LOL. Welcome to the party, Jim.
FYI: BI has been bearish on Gold since it broke $1000. Just sayin'.
Who doesn't already own all this music? This will really payoff a long time from now.
you can hack a bluetooth mouse.
Wow. A lot of people who have been screaming about the missing private payrolls are now all of a sudden scrambling to say they are a scam. Then what were they before? You can't have a statistic work in your favor when you like it and then say it's garbage when it suddenly disproves your case.
Just sayin'.
Thanks, Alex!
LOL. This reasoning is horrible. This is a testament to human compassion.
As the gentleman above noted, it would've clearly been cheaper to not save these people.
I am a capitalist, but capitalism is not the source of everything good in the universe.
My iPad is amazing (thanks, Seeking Alpha!). Apple has another gold mine.
I am so sick of hearing Robini. Been saying the same crap since SP500 666.
When everyone loves NFLX, sell.
Not crazy. Spot on.
The US launch is beyond the holiday season. Rest of the world, 2H 2011. That means they haven't started production. That means it's still a demo.
That means RIMM is playing smoke and mirrors to keep their share price up because they are so far behind in the tablet space.
And video games tanked. LOL.
Isn't Dave an investor in Twitter?
The facts are the facts. BBBY is a consumer retailer delivering double digit top-line growth in a challenging environment. The weak shake out (Linens n Things) and in lean times, the strong retailers get stronger. BBBY is making a smart move into the baby retail space too. Strategic thinking and action yields positive results and they are thinking sharp enough to not only survive but win in this economic climate.
Actually, it's the exact opposite: it's a stock picker's market!! Because macro forces and the bear market are in effect, only select stocks have outperformed. That's why our Premium Newsletter has done so well: we are stock pickers.
Short week. Jewish holidays. Firms encouraging days off. More prop shops downsizing after Labor Day. Big Banks cutting their trading desks.
You make the best point about Cuban's advice: he has billions.
One thing to add about Cuban's "edge" regarding his advice:
Rule #1 in risk management is don't lose money.
Seems to me Cuban is trying to get people to focus more on reducing their risk (i.e., exposure to potentially huge losses circa 2000 and 2008).
If I had all the natural resources in the US, that would work. We have iron ore, forestry, fertile farming land, oil, natural gas, coal etc. There's a reason people waged major wars for this land.
And of course, you didn't read the post. I didn't say we should stop trading with other countries. I said we should balance the wealth we export with the wealth we import. But clicking through and reading is hard these days ...
The fact that people are so resistant to buying from their neighbors is another example of why we're in this catastrophe. But they are the same people who demand a raise at work or complain about stagnant wages. Do you not see why your wages aren't going up? The labor pool supply is growing faster than you can learn a new skill.
We don't have to pay up for things that last more than 1-2 years and aren't a bunch of pressed cardboard with a fancy facade. But if we don't want to pay our neighbors for quality goods, then we're choosing to ironically enrich other countries which will ultimately figure out how to do our jobs too. That's the endgame in case you can't think that far ahead. That problem disappears if you buy local.
LOL. No reason to read the 10Q after that.