The Buzz

All markets and investing news all the time

Will Noodles & Co.'s rally last?

July 2, 2013: 3:06 PM ET

Click the chart to track shares of Noodles & Co.

Noodles & Co. must be carbo-loading. Shares of the casual restaurant chain have been on quite the run since making their public debut last week.

The stock more than doubled on Friday -- its first trading day -- and is up another 25% Tuesday thanks to kind words from CNBC's Jim Cramer on his Monday evening show. The Mad Money host said that Noodles & Co. (NDLS), which offers dishes ranging from macaroni and cheese to Pad Thai, may be the "son of Chipotle."

For those who don't remember, Chipotle (CMG) doubled from its IPO price on its first day of trading and seven years later, it's up more than 16-fold.

Though Cramer is bullish on the stock, he also advised viewers to wait for a pullback in the price before they buy.  But clearly some investors didn't heed that advice.

And that gave StockTwits traders plenty to chat about.

$NDLS Bot it on Friday. All Companies are NOT the same but this company is run by the great Management teams...$CMG.

Good point. In fact, Noodles and Co.'s management has some Chipotle in its history.

CEO Kevin Reddy previously held three top posts at Chipotle, including chief operating officer. Noodles president Keith Kinsey also served in a operations executive role at Chipotle.

And both are recognized for their role in helping Chipotle expand rapidly and successfully.

Another trader seemed to think the company's fundamentals are strong and that investors may miss out if they watch and wait.

$NDLS love when ppl wait for a miss step and watch it go up. Great Co. here and they know franchise and how to reel customers.

There was also a more pessimistic camp, noting that high-flying IPO stocks are remnants of the past, and trading in them can be especially unnerving during a time when the broader market is near all-time highs.

$NDLS $XONE markets are in somewhat of a bubble. We haven't had these type of looney runs in years. Stuff flying up like there is no risk.

Some investors even thought shares have climbed so high that they're in a prime position to short sell -- betting on a decline. But since the stock only recently made its public debut, Noodles' shares aren't widely available to borrow and short.

$NDLS deary no shares to borrow, love to short this, duh.

However, some defended Noodles, pointing out that there were plenty of folks suggesting shorting Chipotle back when it went public and delivered stellar gains right off the bat, but they would be sorry now.

People that talk about shorting $NDLS probably said the same about $CMG.

  • Tesla stock keeps zooming higher

    Shares of Tesla Motors drifted higher Tuesday ahead of the electric car company's annual shareholder meeting.

    Tesla (TSLA) shares have surged more than 180% this year, although the stock has pulled back from a high above $110 last month.

    Investors are keeping an eye on the meeting for any announcements that could drive the stock back up, but so far the news has been pretty dull.

    Tesla executives apparently discussed the company's warranty MORE

    - Jun 4, 2013 3:30 PM ET
  • The 'dumb' money is not so dumb

    After yanking more than $150 billion from U.S. stock mutual funds last year, investors poured $8 billion back in last week.

    By Lee Munson

    There is a feeling out there by some in the financial media that small-time investors are getting back into the stock market at the worst possible time. They -- or 'them' -- think this is entirely predictable and repeatable mistake.

    I get it: "them" are smart and MORE

    Jan 29, 2013 12:46 PM ET
  • S&P 500: The Apple effect

    Investors might want to stop and thank the iPhone 5's clamoring herds for a boost to their stock portfolio this year.

    Shares of Apple (AAPL) have surged 74% this year, helping the S&P 500 (SPX) log a respectable 16% increase. Take Apple out of the mix and the broad index would only have gained 14%, according to research from S&P/Dow Jones Indices.

    Apple accounts for nearly 5% of the market cap of MORE

    - Sep 21, 2012 2:11 PM ET
Fear & Greed
Sponsored by

To view my watchlist

Not a member yet?

Sign up now for a free account
Stupid Stock Move of the Day
#StupidStock Move of the Day! Yes, Urban Outfitters may be finally turnings things around. But $URBN up 17%? Seems a bit excessive, no?
Most Popular
Powered by VIP.