Tuesday, January 02, 2018 1:05:38 PM
The performance in 2017 on Chipotle Mexican Grill, Inc. (NYSE:CMG) was nasty. However, that might benefit the stock in early 2018. The reason I saw that is that sellers were dumping shares in late 2017 to offset capital gains and reduce taxes. Essentially, if an investor was going to sell, they would have done it in 2017 to save money. That limits the amount of sellers in early 2018 (as long as there is no new bad news). The valuation of Chipotle Mexican Grill, Inc. is now actually semi-attractive, especially with the P/E expansion that has taken place on the S&P 500. Lastly, Chipotle Mexican Grill, Inc. did not make a new 52 week low in the last month even with those tax loss sellers. Instead, the stock filled a major support gap fill and is holding it nicely. These factors have me positioning for a bounce in early 2018.
Gareth Soloway
InTheMoneyStocks
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