Sell 1/3: Chipotle Mexican Grill, Inc. (CMG)
Updated from Wall Street’s Best Investments 817, May 15, 2019
Chipotle Mexican Grill, Inc. (CMG) was clocked today, partly due to the rotation and partly because New York City launched a (probably politically motivated) labor lawsuit against it. Do we think this could be superficial news and CMG will bounce back? Sure, especially since we doubt this lawsuit will hurt business at all. That said, we’re looking at the action more in terms of the market—news or not, CMG has had a huge run this year, and today’s selling (and the environment) raises the odds of a deeper and more prolonged rest period. Thus, we’re going to follow the usual script—we’ll take partial profits, selling one-third of our position here and holding the rest for now. SELL ONE-THIRD, HOLD THE REST.
Michael Cintolo, Cabot Growth Investor, www.cabotwealth.com, 978-745-5532, September 10, 2019