Why some stocks are sinking despite big profits

Published August 12, 2012 4:32pm ET



NEW YORK (AP) — For investors, this restaurant chain is as hot as the red chili salsa on its menus. Maybe hotter. Maybe too hot.

The stock of Chipotle Mexican Grill has climbed four-fold in five years, and for good reason. Most quarters, the company would report surprisingly high earnings and investors would clamor to buy. But last month, the pattern broke. Chipotle posted blockbuster earnings, but investors sold.

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