Shake Shack Shares Getting Fried
Joel Elconin is the co-host of Benzinga's #PreMarket Prep, a daily trading idea radio show.
Shake Shack Inc (NYSE: SHAK) shares are trading lower by $6.30 at $86.86 in Tuesday's session. Late last week, chatter circulated that suggested a single Shake Shack restaurant is worth about $50 million, far above competitors like Chipotle and McDonald's.
The stellar-performing, post-IPO stock rallied from its all-time low on February 20 ($38.63) to $96.75 in Friday's session before falling back to close at $92.86.
After a sharply lower open ($88.49 versus Friday's close of $92.86), it did manage to rally into the $90 handle, reaching $90.38 before resuming its decline. So far, it has fallen below $86 per share on Tuesday morning.
If the decline continues through the current intraday low, there may be some additional support at Thursday's low ($85.04). Beyond that, last Wednesday's low is way down at $76.01.
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