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Wednesday. Oct. 22. Before the Bell.

Another good day for Asia markets today, almost matching yesterday's gains. Japan's Nikkei gained another 2.64%. Only Shanghai and Malaysia had negative outcomes. Europe is still having their troubled. It is a mixed market over there with most indices in the red.

The news in the US appears to be equalized between the very good and the disappointing. McDonalds, and IBM are anchors in the markets where Apple and others have taken off. Chipotle Mexican Grill, one of the media favorites is not looking good so far this week. Ever notice how the financial media goes nuts over a particular stock? Starbucks, COCO, to name a couple. Cramer is probably the culprit on this.

As always, all the best and good investing.

Comments

  • Hi JohnC,

    Thanks for the updates and the recap.

    Skeet
  • edited October 2014
    I'm not a coffee drinker, but Starbucks is - I think - successful in large part due to the leadership of Howard Schultz, who I do think is one of the great CEOs (and I liked his books.)

    Chipotle had huge growth, but a weaker-than-expected forecast. I don't get Chipotle (and I look at a number of Yelp reviews for locations and they don't get great reviews), but the growth they're having continues to roll on - it just becomes do you want to buy it at nearly a 50 p/e.

    What they're doing in terms of introducing new concepts (something McDonalds should have done ages ago instead of resting on the fact that it's McD's) is smart. I wouldn't invest in it (I have to really care about something/have an interest to invest, among other things), but I think they're doing the right things. McDonald's would have been smart not to have sold its stake in Chipotle years ago.

    I think what's more troubling that no one really talks about is how obliterated a number of the restaurant IPOs that people hoped were the next Chipotle got. Noodles and Co probably the biggest example:

    http://finance.yahoo.com/echarts?s=NDLS+Interactive#{"range":"max","scale":"linear"}

  • edited October 2014
    I agree@scott, the restaurant business is a tough one. Most don't last the first year.

    I guess my comment is based on the experience of watching CNBC get ahold of a stock and start reporting on it ad nauseam. Of course how many times did they report on GE, the parent company of the network? Some might call it pumping the stock. Never mind that they had a big chunk of GE in their 401k's.
  • edited October 2014
    "Some might call it pumping the stock."

    Did you mean "pump" or "pimp"?

    (Remember the Pink Panther):-)
  • LOL!


    My favorite was bemb for bomb.
  • edited October 2014

    I agree@scott, the restaurant business is a tough one. Most don't last the first year.

    I guess my comment is based on the experience of watching CNBC get ahold of a stock and start reporting on it ad nauseam. Of course how many times did they report on GE, the parent company of the network? Some might call it pumping the stock. Never mind that they had a big chunk of GE in their 401k's.

    CNBC did push GE and now they talk favorably of Comcast. CNBC does pump certain stocks (Jim Rogers called CNBC a "PR agency for stocks" and whatever one's opinions of Rogers are, that's not an entirely inaccurate statement, really.)

    There's also the video of Cramer from The Street a few years back where he talked about the idea that hedge funds will call up CNBC's floor reporters with a view and that view is pushing their book. It wouldn't surprise me if it happens often.

    CNBC pushes whatever is talked about often and whatever they think is of interest to retail. Things like social media stocks. Rarely do you get any discussion of foreign stocks at all and discussion of unheard of names has become rarer and rarer. I was stunned when one of the anchors referenced the band Fugazi, speaking of things most probably haven't heard of.

    The video in question (from Youtube:) While people have their opinions on Cramer and have probably seen this video, it's worth watching from the standpoint of I think it's the reality that people have to at least kind of keep in the back of their mind.

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