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Friday, July 20, 2012

CMG released earnings yesterday and the stock got crushed right from the get go this morning.  Being an employee of a food service competitor, I believe with the increase of commodity price inflation, it will be very difficult for any of these food services to maintain their level of profitability for a very long time.  However, they do have pricing power so that they can subsidize their commodity price inflation in their sales items.  Here is a maximum chart since inception of CMG and where long-term holders will want to consider picking up the stock.  From my support line, it looks like $200 is where the stock needs to retest the technical 'long' guys start throwing money at it again.


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