Are Volkswagen AG and Chipotle Mexican Grill Attractive Short Term Trades?

November 29, 2015 The Security Whisperer Commentary Chipotle Mexican Grill, short term profit, short-term opportunity, solid fundamentals, Trading opportunity, Volkswagen AG

While I normally take the long view when it comes to choosing stocks, sometimes short-term weaknesses in otherwise solid companies prompt me to think about a short term trade.

The Volkswagen AG emissions debacle and current E. Coli outbreak with Chipotle Mexican Grill which has sent investors fleeing from these stocks may be such opportunities.

Most investors would agree that while the diesel emissions scandal is significant and will be costly to rectify (both in term of money, negative press etc.), it is not likely the death knell for the massive Volkswagen AG. The Company has significant financial resources to weather the current storm and has already undertaken further cost-cutting initiatives and put new blood in the C-suite in an attempt to steer the Company through one of the most tumultuous times in its history. Volkswagen AG ordinary shares are down about 25% for the year.

Shares in Chipotle Mexican Grill dropped 12% on Friday (YTD: -12.75%) after the CDC reported several new cases of E. Coli had been connected to the fast-growing restaurant chain. While the fall has not been as drastic as that of Volkswagen, many see the unfortunate E. Coli situation as manageable and the Company should soon be back on track. A similar E. Coli situation occurred at the Jack in the Box (NYSE: JACK) restaurant chain in 1993 and while quarterly sales in the period the news broke dropped sharply, the following year saw comp sales rise modestly and now JACK seems to be back in shape.

Do you think Volkswagen AG and Chipotle Mexican Grill are attractive from a short-term trading point of view?

Updated: “Where Are They Now”

November 28, 2015 The Security Whisperer performance attractive stock, Church & Dwight, Clorox, Genuine Parts Company, Groupe Bruxelles Lambert, Marsh & McLennan, PACCAR, Penske Automotive Group, PriceSmart, Trinity Industries, Weekly Performance, Weekly Review

The Week That Was

November 28, 2015 The Security Whisperer Analysis, performance, Uncategorized Weekly Market Recap, Weekly Review

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The week leading up to American Thanksgiving saw both the DOW and S&P 500 close more or less flat over the previous week, while Canada’s S&P/TSX composite fell a modest 50 bps. The European indexes all closed higher, with Germany’s DAX occupying the week’s overall top spot thanks to a gain of 1.56%. France’s CAC 40 continues to lead the pack on a YTD basis with its return of +15.39%.

The Week That Was

November 21, 2015 The Security Whisperer Commentary, performance, Uncategorized Weekly Market Recap, Weekly Performance, Weekly Review

WTW11202015

Investors piled into stocks last week as each of the indices we track recorded solid gains. Germany’s DAX was the week’s top performer followed by London’s FTSE 100 and the Dow. France’s CAC 40 advanced an impressive 2% despite the devastating terrorist attacks in Paris last Friday.

Updated: “Where Are They Now”

November 21, 2015 The Security Whisperer Analysis, performance Church & Dwight, Clorox, Genuine Parts Company, Groupe Bruxelles Lambert, Marsh & McLennan, PACCAR, Penske Automotive Group, PriceSmart, Trinity Industries

PACCAR; A ‘Truckload’ of Value?

November 18, 2015November 20, 2015 The Security Whisperer Analysis, Commentary attractive stock, automobile manufacturer, dividend payer, dividends, long term value, Long-term Hold, PACCAR, solid hold

PACCAR (NYSE: PCAR) is one of the largest manufacturers of premium light, medium, and heavy duty vehicles in the world. However, the Company thinks of itself as a technology business involved in truck manufacturing…truck or technology, I believe PACCAR offers good long-term value for investors. Lets take a look at the Company’s last five years shall we? Continue reading →

Updated: Where Are They Now?

November 14, 2015November 14, 2015 The Security Whisperer Analysis, Commentary, performance attractive stock, Boring Stock, CHD, Clorox, Genuine Parts Company, Groupe Bruxelles Lambert, long term value, Long-term Hold, long-term investor, Long-term View, Marsh & McLennan, Penske Automotive Group, PriceSmart, Trinity Industries, Weekly Market Recap, Weekly Performance, Weekly Review

Check out the updated “Where Are They Now” page to see where the stocks I like are currently trading.

The Week That Was

November 14, 2015November 14, 2015 The Security Whisperer Analysis, performance Weekly Market Recap, Weekly Performance, Weekly Review

Profit taking was the name of the game last week as 6 of the 7 indices posted sharp declines, with the DOW and CAC 40 tying for first place in this dubious competition. Strong October job numbers are making an even louder case for a December interest rate lift off. Long-term investors may want to take the opportunity to increase exposure in their preferred stocks upon further weakness in the weeks ahead (once the business case for investing in the model has not changed materially of course).

Buy One, Get One Free! (Not Really…But Energy Stocks Are Definitely On Sale).

November 11, 2015November 12, 2015 The Security Whisperer Commentary 2P, Bargain Energy Stocks, Energy, Energy Investing, ENI, Lifting Costs, long term value, long-term investor, Long-term View, STATOIL, TOTAL SA

OPEC’s decision to keep pumping crude thereby keeping a lid on oil prices has had a devastating effect on many players in the oil sector. Continue reading →

Updated: Where Are They Now?

November 9, 2015November 9, 2015 The Security Whisperer performance top performer, Weekly Performance

I updated the “Where Are They Now” page. Penske Automotive Group (PAG) and Church & Dwight Co. are still in the red, while Groupe Bruxelles Lambert (GBL) and PriceSmart, Inc. (PSMT) are posting strong positive moves since first mention.