Marketsurfer says short shake shack

Discussion in 'Stocks' started by marketsurfer, Apr 25, 2015.

  1. I disagree. I am completely convinced on this and am simply waiting for the right time to start the short entry. the hype is the otherway on this one, not from my side. This dog is going down and i strongly suggest that longs take profits as soon as possible.. surf
     
    #21     Apr 26, 2015
  2. Eating at Shake Shack, or putting on a position on them, but as far as analyzing how expensive it is, I think you need to look at how big they're likely to grow and how much capital that will require. Is their market cap a substantial percentage of the long established burger stocks like McDonalds? If I were going long, it would be on the assumption that they were eventually going to expand to a decent competitor size. Of course at the present time, I'd pay only a fraction of that value.

    [edit] Okay, so I looked up the market cap of MCD and Shake Shack. MCD's is larger by a factor of about 120. Their price/sales ratios aren't that far off with MCD about half as expensive as SHAK.

    I suggest shorting MCD and going long SHAK. The ratio I'd probably short about 10x as much dollar amount of MCD than long SHAK. This is because MCD is a heck of a lot less volatile than SHAK, or at least should be. (I haven't looked up details.) [/edit]
     
    Last edited: Apr 27, 2015
    #22     Apr 27, 2015
    Chris Mac likes this.
  3. The burgers look damn good... this could be like the next Chipolte

    [​IMG]
     
    #23     Apr 27, 2015
    TooOldForThis likes this.
  4. Ditch

    Ditch

    #24     Apr 27, 2015
  5. Chris Mac

    Chris Mac

    The trend is up.
    No reasons to be short, you ll be broke earlier than the company.

    Chris Mac
     
    #25     Apr 27, 2015
    dbphoenix likes this.



  6. No doubt, they look great. I was a huge burger eater, before my diet-- i love burgers and would eat 2 plus per week---so I decided to try shake shack due to all the hype-- Man, was I let down-- maybe they were good at one point, but the meat is TERRIBLE, the fries GREASY, the bun NOT TASTY--- what a disappointment-- My bet is they cheapened their product to earn more $$-- sure tastes that way to me. SHORT SHORT SHORT
     
    #26     Apr 27, 2015
  7. My bet is this dog is going down very soon, getting ready to position for short surf
     
    #27     Apr 27, 2015
  8. S2007S

    S2007S



    Good, is that an actual pic from shake shack?

    if so anyone can make a burger like that, I don't understand the hype behind these burger places, I make burgers that taste just as good at home instead of paying $8-$15 for one at these fast food places....
     
    #28     Apr 27, 2015
  9. Entering first short in SHAK at $67,09
     
    #29     Apr 27, 2015
  10. Chris Mac

    Chris Mac

    Ok, one example : Yum Brands (KFC, Pizza Hut).
    Year after year, more and more disgusting, lower and lower quality... but eventually equity goes higher and higher.
    Thanks to "Globalization".

    yum.gif

    Chris Mac
     
    #30     Apr 27, 2015
    londonkid likes this.