I sold my Chipotle stock. I’m still convinced that it’s a great company that makes healthy, tasty food, and it’s going to be growing rapidly. Next time I go back to Colorado, I’ll be eating Chipotle burritos with habenero sauce and loving it.

Unfortunately, the stock’s getting a bit too much love at the moment. It’s an awesome company, but is it really worth four billion dollars? I don’t think so. Starbucks is priced at under 20 billion. If Chipotle keeps exceeding analysts’ expectations and hits a 1000 stores within 3 years, I still only see the stock generating about a 10% return. If anything goes wrong, on the other hand, things will get ugly.

I’d rather have my money somewhere else. It’s unfortunate that my switch to b-shares a couple of months ago didn’t have a chance to pay off. On the other hand, CMG.B got me what I consider a decent year’s return in two months.

02/21/2007 09:31:58 Bought 45 CMG @ 63.55
08/07/2007 15:02:36 Sold 45 CMG @ 108.27
08/07/2007 15:05:48 Bought 45 CMG B @ 98.4894
10/10/2007 13:29:29 Sold 45 CMG.B @ 119.1106

In total, it cost 2859.75 and four 9.99 trading fees to make a 2940 profit off of one company (albeit two classes of stocks). It’s still a two-bagger, and I won’t hear otherwise!

Legal Disclaimer: All of the information in this article is accurate to the best of my knowledge. However, I make no guarantee about the accuracy of anything written above. I’m not responsible for any mis-typings, or any other errors in the information. If you purchase any stock solely because I did, you do so at your own risk.

This entry was posted on Thursday, October 11th, 2007 at 2:16 am and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.