If Chipotle Mexican Grill, Inc. CMG 1.67% ever gets its act together, the stock has some impressive short squeeze potential. Chipotle’s struggles following 2015 food safety outbreaks have been well-documented. Opportunistic dip buyers such as Bill Ackman have yet to be rewarded for their turnaround bets.

The chart below provides a concise visual summary of the derailment of the Chipotle story. The stock’s share price and revenue had been growing at a steep and steady clip until the second half of 2015. When the e. Coli outbreaks began, sales took a predictable dive.

Chipotle eventually rectified the situation and hasn’t had any major food safety concerns in nearly a year. However, the company’s sales and share prices are still well below where they were prior to the PR nightmare.

The third line on the chart, short interest, is likely one of the major reasons Chipotle shares are having such a hard time gaining traction.

Chipotle’s short interest is up 101.8 percent in the past year. According to shortsqueeze.com, Chipotle now has an elevated short percent of float of 19.4 percent. There are…

Click here to continue reading

Want to learn more about how to profit off the stock market? Or maybe you just want to be able to look sophisticated in front of your coworkers when they ask you what you are reading on your Kindle, and you’d prefer to tell them “Oh, I’m just reading a book about stock market analysis,” rather than the usual “Oh, I’m just looking at pics of my ex-girlfriend on Facebook.” For these reasons and more, check out my book, Beating Wall Street with Common Sense. I don’t have a degree in finance; I have a degree in neuroscience. You don’t have to predict what stocks will do if you can predict what traders will do and be one step ahead of them. I made a 400% return in the stock market over five years using only basic principles of psychology and common sense. Beating Wall Street with Common Sense is now available on Amazon, and tradingcommonsense.com is always available on your local internet!