I've never been to China, but I've been in Taiwan. Never been to Chipotle Mexican Grill, but I do like Chipotle sauce.
So why am I promoting CNOOC Ltd. (CEO) and Chipotle Mexican Grill (CMG) from B+ to A- on my list of stocks? It's love. CNOOC inked another new contract, this time to bring natural gas out of Indonesia to the thriving region of Southeast China. Growth begets growth, and CNOOC is executing so well and still trading at only 11 times earnings. A steal, especially at $112, where it is trading at the low side of its moving averages.
Chipotle Mexican Grill not only routed earnings estimates, but raised guidance. Other A- picks like Crocs and Under Armor did the same beforehand. CMG is the fastest growing restaurant in America worth buying. When I first saw the stock, it was at $86, and eventually tumbled to $77 on cost issues. So much for issues. At $108, CMG longs are happy with their smokin' hot stock.
The good news for both stocks is that there's much more upside ahead. China will continue to grow — last quarter was 11.9% growth in the economy. CMG could still expand with success nationwide. The Co knows how to manage and execute efficiently.
They earned the A-.
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