The Wall Street shysters really know how to slaughter muppets. They hyped the shit out of the IPO of a freaking burger joint for weeks. Shake Shack is a 63 restaurant chain with $85 million in sales and $3.5 million of profits, down 21% from 2013. This cutting edge company has this unheard of concept of selling burgers, hot dogs, shakes and fries to the obese ignorant masses. WOW!!! Sounds like a can’t miss.
The IPO price, for insiders, Wall Street executives, Washington politicians, and anyone with net worth over $1 billion was $21.
For the muppets, the stock opened at $47 per share and immediately surged to $52.50 within seconds. The muppets were piling into this sure thing. Then the Wall Street shysters pushed the sell button to lock in their easy profits.
The stock cratered by 13% by the end of the day to below its opening price. It will continue downwards as more and more muppets who bought on margin are slaughtered. The Wall Street bankers who collected hundreds of million in fees made out like bandits. What a shocker.
To give you some perspective on how ridiculous this over-hyped piece of shit is, they issued 5 million shares. With earnings of $3.5 million, that is 70 cents per share. That give this microscopic burger chain a PE ratio of 65. That is absolutely ridiculous for a company burning cash, with declining profits.
This is another case of muppet death by burger.
Don’t hate the player, hate the game
A muppet and his money are soon parted. Suckerssssssssss !!!
Idiots and their money are soon parted.
Nobody put a knife to their throat.
This issue is a ready-made penny stock. A tiny burger chain with $85M in sales? I can’t understand why anyone would pay $21 a share for it- $2 is more like it if you’d even bother with it at all
But, then, one of our customers called a few weeks back asking what I thought of some tiny little fracking operation with $16,000 in revenues for 2013, and $3.5M in debt, trading at 58 cents a share Why would you even want to own a company with revenues less than what a low-wage earner makes, I asked. With over $3M in debt? And that was with oil at $80 a barrel. Don’t know what the 2014 numbers look like yet, but tend to doubt that there will even be 2014 numbers.
Shake Shack Fried – Nears Bear Market
Submitted by Tyler Durden on 02/02/2015 10:26 -0500
From the post “home run” IPO highs of $52.50, SHAK is now trading $42.50 for a drop of 19% and nearing the dreaded “bear market” 20% drop… Unless you owned it at the IPO, you are a loser for now…