We’re Raising Our Stop-Loss on Chipotle

There’s one stock that I want to spend some time on in today’s podcast, and that’s Chipotle Mexican Grill (NYSE: CMG). I was a bit unlucky in terms of my entry date for this position, because I issued the recommendation right at the time that an announcement went out that a famous investor was also invested in the stock.

So, if you look at the portfolio today, you’ll see that we’re currently down by about 8%.

However, I do not want you to worry about this. This does not change the fact that Chipotle is a phenomenal stock, and that it has incredible upside. I still believe that this stock is going to profit from the millennial mega trend, and that this could be an amazing winner for our portfolio.

Now, if you’ve read the Profits Unlimited trading manual, you’ll know that at minus 8%, we’ve entered the beginning phase of our small-loss strategy. However, as I’ll explain in today’s podcast, I’m going to push that stop-loss out to 12%.

I’m also going to explain to you:

  • Why I’m comfortable leaving our small-loss strategy at 12% for Chipotle.
  • What we’re going to do with Chipotle should we get stopped out of the stock.

To listen to today’s podcast, click here.

To read a transcript of today’s podcast, click here.

Should Chipotle fall by 12% or more, you will get an email from me telling you to sell this position. But for now, hold tight, and keep an eye on your inbox.

In case you missed it, I just released the April issue of Profits Unlimited yesterday. In it, I described a brand-new stock that takes advantage of both our millennial and Internet of Things mega trends, and I gave you instructions on how to purchase this stock. This month’s issue also contains important information about bringing STMicroelectronics (NYSE: STM) into our portfolio; so in case you haven’t read it yet, please do so now.

Lastly, I want to remind you that there is a new special report available to Profits Unlimited subscribers, called How to Make 1,000% in America’s Next Energy Megatrend. In this report, I unveil the company that’s perfectly positioned to benefit from the best new form of alternative energy. To access it, just click here.

As always, if you have any questions regarding our positions, or the topics that I cover in the weekly podcasts, please let me know by writing me at profitsunlimited@banyanhill.com.


Paul Mampilly
Editor, Profits Unlimited