I would gladly pay you tuesday for a burrito today.

Members present: Brian, Bickford, Danak...Darkness shrouds them as they approach a new buy. 

Today we are going to look at another company and analyze some companies that sell the same sort of service or good, in order to determine if that stock is under or over valued. Specifically, we are going to take a look at Chipotle Mexican Restaurant. This means that we are going to compare it to other restaurants that are at a similar level, i.e. not schmancy.

Below is a handy infographic from http://www.freestockvalueranker.com/, which despite it's sketchy name, is a handy tool.

From what we see CCSC (Country Style Cooking Restaurant Chain Co., Ltd.) is undervalued, however if you take a look at the 200 DMA, it looks a bit scary: 

In this case, this doesn't seem like a good investment just yet. However, it might be worth keeping an eye on for some growth. Right now it is a bit risky, especially since it is a market we don't know about---namely Chinese fast food, in China.

Then there's something like Cracker Barrel (CBRL), which we understand and see as having a responsible and clear growth model--always along major highways, always filled with tons of people looking for their eggs in a basket and crap on the walls. A look at the 200DMA over five years says that we missed the boat, though:

As you can see, it doesn't look like their is a lot of unforeseen growth potential.

We took a look at Kraft, but it's only been around six months as KRFT. Wawa is privately traded, so no good for us. Then there's Hormel (HRL), which is undervalued

The search continues. However, it must be noted that we are starting to get comfortable with the process of picking stocks and analyzing them for their potential investment value. It should also be noted that we haven't actually purchased one of these yet.


Profit!