With barely making profits they now have a market cap of $1 Billion. This is what happens when BUBBLE ben bernanke pours trillions worth of dollars into a worthless economy....this is what happens when you have interest rates at 0%......it puts ludicrous values on companies....the only reason this company is trading with a billion dollar market cap is because of BUBBLE ben bernanke ...this company sells burgers...a billion dollar market cap ha..
I don't think they're worth $1b either but the beautiful thing about our system is that if you think it's overvalued you can short it.
Mmmm hamburger, fries and a shake. Perhaps the "unbeautiful" thing is that the price doesn't come down because it really is overvalued. The price comes down when more people agree that it is overvalued. Irrational markets, solvency and all that.
Agreed, it's always about timing in this game. If it were as easy at crunching a few numbers and saying "that's overvalued" or "that's undervalued" and then making money, it would be too easy and everyone would be doing it.
And an adult beverage, don't forget. First Shake Shack I visited in Philly...great burgers also Regarding the valuation, what was the talk on MCD in the 1960's? Or Burger King? Wendy's? I'm not buying the stock, as this isn't the 1960's or whatever, but let the insiders have their day in the sun, then maybe you and I can enjoy a burger, some great fries and an adult beverage Maybe we can sell short some shares in a few days/weeks, then use the proceeds to go long, and use that cash to go long...for the next 10+ years?! Perspective.
Tried to short at $48....no go...not shortable because its a new listing....would have been a nice trade though.
It was available at my bd. wish it wasnt though. Thankfully I only played small. I had a -4k hamburger. LOL
I ate at MCD the other day to see what was going on. It was expensive and it seemed to have a lot more employees than their competition. I get the impression that the public wants more highly spiced foods nowadays. Taco Times seems busier, at least in this small town.