Shake Shake Getting Baked

Joel Elconin is the co-host of Benzinga's #PreMarket Prep, a daily trading idea radio show.

'' Shake Shack SHAK shares are trading lower by $6.30 at $86.86 in Tuesday's session. It appears the valuation of one its franchises being valued at $50 million based on its current stock price has given some investors indigestion. The stellar performing IPO has .rallied from its all time low on February 20 ($38.63) to $96.75 in Ftriday'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 reached $86 and is attempting to rebound into the $87 handle. 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.