Dear readers,

This week, Chipotle Mexican Grill (“Chip”) has caught my attention with its blistering 84% surge since 24 Dec 2018 and its US$100 rally in the past 16 trading days.

First, what does Chip do?

Based on Chip’s company website (click HERE), it is an American chain of fast casual restaurants and has nearly 2,500 restaurants as of 31 Dec 2018 in the U.S., Canada, France, Germany and UK. It is the only restaurant company of its size that owns and operates all its restaurants. Its market capitalisation amounts to US$19.6b.

Why is it interesting?

Personally, I think Chip may be a potential short target with a favourable risk to reward proposition with a take profit of a few bids, base mainly on a technical perspective.

Basis to short

a) Since 7 Mar 2019, Chip has appreciated approximately US$100 from US$609.53 on 7 Mar 2018 for 14