Stockchase Opinions

Kash Pashootan Shake Shack Inc SHAK-N DON'T BUY Aug 14, 2015

A good example of an exciting company that IPOs and ends up trading at a premium because everyone likes it. We have seen this with Facebook (FB-Q). It was exciting and came out at a premium, and for the first while the shares were down. This stock is suffering from a similar situation. He likes their business, but would not be a buyer as he feels the evaluation is too rich. PE is pricing in significant growth in the next 6-18 months, so it is pricing in perfection. If there is any shortfall, you are going to see the stock price punished. He would prefer McDonald’s (MCD-N).

$55.330

Stock price when the opinion was issued

food services
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BUY

The stock looks great now, and has had a great run recently, though $30 off its all-time high. No reason to sell it.

COMMENT

Time to add? They are only in 26 states so far, so there is a long playing field for SHAK-N. It trades at a high multiple, so if they disappoint it can become very painful quickly. Be cautious. He prefers to own the established names like SBUX-Q or CMG-N.

BUY
Down today on weak guidance. This was going to be down no matter what, because now no stock is going up despite earnings. If someone is selling a stock because of Omicron, it's stupid. The pandemic won't last forever. The brand value alone is worth half its market cap. Today's drop is not meaningful. He's long. There's a bright future ahead, global, larger with digital/online ordering. Loves the company.
HOLD
The company isn't making as much money as it should, though the product is good.
BUY

Maybe the US consumer is slowing, but remember that they continue to expand across the world take share in those places. They've done everything that a growing company should do, including hiring a CEO (from Papa John's) who can expand and has expanded a company.

BUY

Is -7% the last month, a weak year so far. At a 34 RSI and is very oversold. They guided revenue at +16-17% this year. If it reports that next Thursday when they report, this is a good set up.

BUY

Quality food and good managers. Buy 50-75 shares initially.

HOLD

Consumer discretionary hasn't held up, because consumer sentiment has fallen, taking SHAK down. But SHAK's fundamentals remain the same. RSI is at 30, so is oversold. That said, it's trendless and this is not a buying opportunity. It could be rangebound for a while. He's long-term and will hold. Traders love it here, though.

BUY

Just reported a mixed quarter, but rallied. The stock has bottomed. Report a slight revenue miss with a same-store sales growth and trimmed their full-year revenue forecast. 

BUY

They reported last week that they will open 40-50 new locations this year. He's long.