I ditched my CMG shares when the ecoli issues reoccurred/occurred in multiple places.
I since bought back a very small position while the stock was at rock bottom.
I’m still down from the first dump, but made up some ground (and am still up) from the second , smaller group of shares I bought at bottom.
There are some really well written and researched free articles on Seeking Alpha (no need to link, just go there and search CMG) that identify headwinds that appear significant. Yet MF continues to recommend (even now) CMG purchase.
I tend to place credence in the SA article that indicates considerable headwinds for the next 12 months.
Anyone else tinkering with CMG and decided which way to lean??
I bought 50 shares of CMG several years ago, and enjoyed a very nice ride as the share price increased significantly.
When the e. coli issue arose several months ago, and the price dropped, I purchased a few more shares (still at a higher price than I paid several years ago).
Since then, I still have a profit on paper, albeit much smaller than it was previously, and have considered purchasing a few more shares.
But given all the recent news about CMG potentially going into the red in 2016, I have decided to wait it out, ie- I do not plan on selling any of my shares any time soon, and likely will not purchase any additional shares unless the price gets so low that it is too difficult to resist.
Thanks for posting, but this post (and stock) really isn’t relevant to this board. There are a myriad of boards where you could discuss this, but this is Saul’s board, for “Saul-type” stocks, and discussions of such type of stocks.
Now, if you presented CMG like Paul presented his company (or kevin or F1, you get the idea) that may be appropriate, or it may not.
Bob, I think what Brian was meaning was that just throwing out the name of a company doesn’t produce much of a discussion. Tell us about the issues that concern you. Describe what’s happening to revenue, same store sales, earnings, what was predicted when this first happened, and what is predicted now, and why. What did the article about headwinds say? Give a link to it. A couple of snippets from it. What do you think it’s PE will be at the end of the year. What do you like about it? In other words present the stock to us.
On the other hand, I’d hate for people to have to pre-eliminate stocks, before discussing them, as quote “not a Saul-stock”. This board is for discussing interesting stocks using the framework described in the Knowledgebase, and then deciding whether we are interested in it or not. From my limited knowledge CMG is starting to look like a possible (or possibly not) turnaround stock, and as such wouldn’t really be for our board, but why don’t you present it to us first so we can discuss it and see.
Bob, I think it’s going to be hard to make the case that CMG’s 30+ PE ratio isn’t expensive. That ratio is going to go A LOT higher after Q1 earnings, too. Personally, I think they are going to be a disaster. Long term it may be ok, but like another person said, I won’t be buying unless it drops much further. It ain’t cheap.