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Cramer: A Stock That Got Too Hot

Tuesday, 20 Sep 2011 | 6:26 PM ET
Cramer's Market Outlook
Mad Money host Jim Cramer helps you separate fact from fiction in the market.

Even the best of stocks can get too expensive, and Chipotle Mexican Grill reached that point Tuesday, Cramer said. The restaurant chain ran up huge during the day before crashing back down.

“There comes a time when you have to caution your audience that a stock has gotten too hot,” he said, “and it’s okay to take profits.”

The “Mad Money” host has long been a fan of Chipotle . But in the last 48 hours, he said, people began paying too much for the stock. The reason—the company opened a new kind of restaurant in Washington D.C. called ShopHouse Southeast Asian Kitchen.

Cramer has nothing against the new restaurant. In fact, he loves the idea. But the stock, selling at almost two and half times its growth rate, is just too hot.

He suggests revisiting Chipotle when it moves lower.

(Related: Cramer & Greenberg Spar Over Chipotle)

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