BUY 1 48 See graph Susan went online logged into their brokerage account and

Buy 1 48 see graph susan went online logged into

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BUY #1 @ $48 . (See graph.) Susan went online, logged into their brokerage account, and entered CMG in the symbol box, then she entered “210” in the “# of shares” box, and clicked Enter. The broker immediately, like in two seconds, bought 210 shares of CMG for $10,080 of their cash plus a $10 commission. The account immediately showed they owned 210 shares of CMG and had $67,910 left in cash. If they sold CMG immediately and there were no changes in price, they would instantly have $77,980 cash and no shares—all of the $78,000 would be back in cash except for the two $10 commissions. BUY #2 @ $49 . (See graph.) Over the next two weeks the price went up to $55. “Do you want to buy another $10,000 at $55? If it keeps going up we might not be able to buy more, because the price will be above our Stockpile Price ceiling of $59,” Doug said. “There’s a strong Ceiling right at $55. I’m hoping it will bounce off and give us another shot at $42,” Susan replied. “Let’s wait and see.” The price hit $55, bounced off, and then slid back to $49. “There wasn’t much volume and $49 looks like such a solid Floor. It’s not going through to $42 anytime soon,” said Susan. “Let’s hit it now, then,” said Doug. So they bought another 210 shares at $49 per share. They then had a total of 415 shares with about
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$20,000 invested. The price moved back up to $51. They waited because the price wasn’t moving as far up each time, so it didn’t look as though it was about to run off without them. They were thinking that the next time the price came down to the $49 Floor, it was going to break through and drop. A few days later the price slammed through $49 down to $47 on huge volume. Doug said, “If the Floor holds, let’s buy another $10,000 right now, because I don’t think this is going to go lower than $48–$49. Maybe CMG management is buying back shares at $48. I don’t know, but somebody big seems to be stepping in and buying at $48. If this doesn’t break through after all this volume, it probably isn’t going to. This may be as good a deal as we’re going to get right now. I’m ready to go all in with the other $20,000.” BUY #3 @ $50 . (See graph.) The next day the price moved up right from the market opening. “Dang it!” Doug shouted. Susan was in the kitchen. “What, honey?” “Oh, just Chipotle. It just won’t go down. It’s on its way up again. Let’s grab it while we still can.” And they bought another 200 shares at $50 per share. They then had a bit over $30,000 invested in CMG and owned 615 shares. They also had about $10,000 more in cash earmarked for CMG. The price moved up to $52, and Susan pushed to buy the last $10,000. She thought it just didn’t seem likely the price would go back to $49 again after that last big dip. Doug said, “We’ve got the Ceiling at $55. If it gets there, let’s buy. But if it bounces off $55 again, let’s use the last of the cash at $49.” The price slid to $50, then went to $53 in September, then dropped to $49 again.
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