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Shake Shock - SHAK Crashes 15% From Overnight Highs

Tyler Durden's picture




 

From $79.94 exuberant bubble highs overnight to $67.50 lows now, SHAK has collapsed over 15% from its post-earnings highs as the reality of a burger chain selling for 100s of multiple of excited future earnings sets in...

 

 

Charts: Bloomberg

 

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Tue, 08/11/2015 - 13:25 | 6414519 KnuckleDragger-X
KnuckleDragger-X's picture

Tsk, that didn't last long.....

Tue, 08/11/2015 - 13:39 | 6414581 Kprime
Kprime's picture

a good shake is always over too quick

Tue, 08/11/2015 - 14:19 | 6414815 BuddyEffed
BuddyEffed's picture

I wonder how much bounce and levitation this stock got just because it sounds like "Shaq" and therefore get's positive asssociation with the NBA star Shaquille O'Neal.    Things like that sometimes play on people's emotions and decision making.

Tue, 08/11/2015 - 15:07 | 6415091 Rock and Hard Space
Rock and Hard Space's picture

Interesting pov, I guess I thought it had more to do with 70% of 'murkins being overweight and the associated, proven, intelligence lost with every 10 pounds over ideal weight.

Tue, 08/11/2015 - 21:10 | 6416495 Youri Carma
Youri Carma's picture

I thought you were going this direction mentioning this 'Shag' association:

Austin Powers: The Spy Who Shagged Me https://www.youtube.com/watch?v=JBHKVAs85Ko

Silly me.

Tue, 08/11/2015 - 13:25 | 6414520 Hitlery_4_Dictator
Hitlery_4_Dictator's picture

Unchecked exuberance, greed and fraud and this is what you get

Tue, 08/11/2015 - 13:43 | 6414595 sun tzu
sun tzu's picture

Just like LNKD went from $225 to $260 in AH after releasing earnings. They closed at $203 the next day and are $188 now. LOL

 

I gotta think it was some hedge funds trying to scare the shorts and create a squeeze that failed

Tue, 08/11/2015 - 14:09 | 6414753 junction
junction's picture

Pump and dump by the algos.

Tue, 08/11/2015 - 13:25 | 6414521 buzzsaw99
buzzsaw99's picture

from a p/e of negative infinity to positive hundreds in a single quarter is quite impressive

Tue, 08/11/2015 - 13:32 | 6414547 knukles
knukles's picture

Do a reverse stock split to enhance the shareholder experience

Tue, 08/11/2015 - 13:37 | 6414568 Temporalist
Temporalist's picture

I'm jumping on board now while the getting is good.  Who doesn't like overpriced fried burgers with overpriced fries and shakes?  And I hear they are now doing overpriced chicken!  Win, win, win!

Tue, 08/11/2015 - 13:44 | 6414599 sun tzu
sun tzu's picture

At one point, each Shake Shak burger joint was worth more than an entire Home Depot or Target store.

Tue, 08/11/2015 - 13:52 | 6414647 NotApplicable
NotApplicable's picture

Well, you could lose an awful lot of money owning one of those big ole empty stores. It's a little harder to do that in an itty bitty shack.

Tue, 08/11/2015 - 13:25 | 6414523 Stormtrooper
Stormtrooper's picture

But their burgers are good! What's the problem with multiples of 100's?

Tue, 08/11/2015 - 13:29 | 6414535 pods
pods's picture

That's a shake, just milk and ice cream?  

Thats $5... you don't put bourbon in it or nothin'?

Tue, 08/11/2015 - 13:35 | 6414560 silverer
silverer's picture

Pssst... no, and that's not real ice cream either...

Tue, 08/11/2015 - 13:53 | 6414650 Sokhmate
Sokhmate's picture

Liquid Melamine

Tue, 08/11/2015 - 13:38 | 6414577 Kprime
Kprime's picture

that's a pretty damn good shake, I don't know if it's worth $5, but it's a pretty good shake.

Tue, 08/11/2015 - 14:59 | 6415058 Automatic Choke
Automatic Choke's picture

....(now dance!)

Tue, 08/11/2015 - 13:29 | 6414538 Lokking4AnEdge
Lokking4AnEdge's picture

How come they did not open yet options trading for this stock?

Tue, 08/11/2015 - 13:46 | 6414614 sun tzu
sun tzu's picture

The volatility premium would be insane as 10% daily moves are the norm.

Tue, 08/11/2015 - 13:31 | 6414544 knukles
knukles's picture

And how would you like that cooked?
No, sorry, but we don't do books here.

Tue, 08/11/2015 - 13:32 | 6414548 Automatic Choke
Automatic Choke's picture

Thanks, knuk...... yet ANOTHER keyboard ruined by spitting coffee all over it.

Tue, 08/11/2015 - 13:32 | 6414546 Make_Mine_A_Double
Make_Mine_A_Double's picture

Shack is the perfect proxy for this fake market. Their biz model could have been selling Hello Kitty dildos to nuns over the Internet - it was always just a mo mo churn, burn - IPO - and dump before the prols can bail.

Mission accomplished suckers..

Tue, 08/11/2015 - 13:37 | 6414562 knukles
knukles's picture

How can I resist?
Another Deflationary Indicator.  Marked down for $65 to $16

http://www.amazon.com/Vibrating-Hello-Kitty-Vibrator-Masturbator/dp/B000...

Tue, 08/11/2015 - 13:37 | 6414571 ParkAveFlasher
ParkAveFlasher's picture

If you can find a pic of that in a nun, I mean, LEGENDARY

Tue, 08/11/2015 - 14:42 | 6414974 kchrisc
kchrisc's picture

Can we "crowd source" it?

Liberty is a demand. Tyranny is submission..

 

But then I would much prefer a Batman one to match my sheets and toothbrush.

Tue, 08/11/2015 - 15:32 | 6415226 Sturm und Drang
Sturm und Drang's picture

Perfect for the holidays. Thanks knukles.

Tue, 08/11/2015 - 13:32 | 6414550 silverer
silverer's picture

Unicorns and rainbows.  Yes, people are that hopey changey, I guess.  With thousands of fast food chains in a state of stale profits and actual physical deterioration, maybe you just need to open your eyes for once.  A beautiful tree grows on an acre of land.  Gee, two beautiful trees would be better.  Well if two is better, than 20 is even better.  Then plant one everywhere you can find a space.  Eventually, they compete for water, soil, sunshine.  The uniqueness of the one tree is forever lost.  Nobody even looks at this crowded acre anymore.  Its just an overgrown, twisted jungle.  Nothing special.  And so it goes.  Damn that reality.  Damn it all to hell.  Maybe so, but you have to deal with it.  Right now, few are.

Tue, 08/11/2015 - 13:37 | 6414567 ParkAveFlasher
ParkAveFlasher's picture

If this is sarcasm, +61.

Tue, 08/11/2015 - 13:38 | 6414576 Temporalist
Temporalist's picture

Just wait till they start selling unicorn burgers with a side of shit skittles...PE to infinity!

Tue, 08/11/2015 - 14:01 | 6414710 OldPhart
Tue, 08/11/2015 - 13:36 | 6414566 dobermangang
dobermangang's picture

The masses can't even afford to go to McDonalds nowadays.  

Tue, 08/11/2015 - 13:59 | 6414687 yellowsub
yellowsub's picture

They don't want to go to McDonald's, that's the difference...  

 

Tue, 08/11/2015 - 13:38 | 6414574 Yen Cross
Yen Cross's picture

  Maybe SHAK should start taking IOU's like they did on Popeye cartoons.

Tue, 08/11/2015 - 13:41 | 6414587 Lumberjack
Lumberjack's picture

I've been watching SUNE (Sun Edison) and thier 'affiliate' TERP (Terraform Power) Looking at the one year chart comparing both, I see in May when a departure takes place and today, where some sort of inversion comes into play. I hope these former Enron fella's repeat history...

 

 

Tue, 08/11/2015 - 14:12 | 6414769 Lumberjack
Lumberjack's picture

I'm having a ball watching the SUNE live chart... It would make a great drinking game now.... Try It!

Tue, 08/11/2015 - 13:45 | 6414606 Shaznardickleze...
Shaznardickleze the Doon's picture

But.. But... Buzzfeed news told me this franchise makes an average of $100k every day per store. 

hahahaha buzzfeed news.

Tue, 08/11/2015 - 13:50 | 6414635 Temporalist
Temporalist's picture

CNN is all over the awesomeness too:

Shake Shack burgers continue to sizzle

"Despite raising prices in September and again in January, Shake Shack (SHAK) saw no shortage of salivating customers between April and June."

http://money.cnn.com/2015/08/11/investing/shake-shack-earnings/index.html

 

Ahh, millennials...what can't free government student loan money not ruin?

Tue, 08/11/2015 - 13:58 | 6414678 Hitlery_4_Dictator
Hitlery_4_Dictator's picture

millennials will be the people cutting our heads off for beliveing in Jesus while screaming "We are tolerant" 

Tue, 08/11/2015 - 14:01 | 6414712 clade7
clade7's picture

Da Fuk?  That was fast...Wait unti Culvers goes Public!

Tue, 08/11/2015 - 14:38 | 6414795 g3h
g3h's picture

GOOG is the new Shak, only 100 times bigger.  Who needs Shak?

Call it the American wealth.

Tue, 08/11/2015 - 14:39 | 6414957 kchrisc
kchrisc's picture

Can I get fries with that?

Liberty is a demand. Tyranny is submission..

Tue, 08/11/2015 - 14:52 | 6415021 Rikky
Rikky's picture

going to CitiField this weekend and will partake of some Shake Shack but to me its more because the alternative at the stadium is disgusting.  just can't understand why anyone would get all hyped up over a burger chain when there are 40 other ones vying for the same customer already.

Tue, 08/11/2015 - 16:20 | 6415417 cro_maat
cro_maat's picture

Best deal at Citi Field is the New England Clam Chowder for $5 if I recall.

However, I no longer follow sports now that my kids are grown and I know that they are all Corporate Circuses designed to work in tandem with flouride and pharmaceuticals.

Tue, 08/11/2015 - 15:26 | 6415187 mastersnark
mastersnark's picture

10 bagger. Back up the truck. Steal from grandma. etc.

Tue, 08/11/2015 - 17:56 | 6415834 ElixirMixer
ElixirMixer's picture

SHAK is CYNK on a much larger scale.

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