SHAK Shake Shack IPO First Day of Trading

On Thursday evening, 1/29/15, the Shake Shack IPO prices at $21 far above the original 14-16 range and revised 17-19 range. The tiny burger chain trades under the symbol SHAK.

Today, Friday, 1/30/15, traders are tripping over each other to buy the burger-maker. As the fry cook behind the counter at the local greasy spoon quips, "You want some fries wit dat?"

The market makers took about an hour to zero in on an opening price; a lofty $46. More time goes by and then the SHAK IPO begins trading with loud cheers as the price opens at $49 well above the $21 offer a +130% gain. The chart says 47 for the open. The IPO has already doubled and more in price in the opening seconds (the 21 price serves as the base). The NYSE floor takes on a festive atmosphere despite the broad market weakness occurring. The euphoric celebration welcomes a blowout price debut for the tiny burger chain that only has 63 locations. Yes, comically, only 63 locations. That's funny.

Traders are tripping over each other to buy Shake Shack that is only predominant in New York City. The restaurant locations outside of New York are actually underperforming but investors are throwing their wallets at the market makers begging for shares. SHAK remains elevated all day long ending up +119% (more than a double) on its first day of trading.

Investors are throwing their money at a fry cook that promises to open new stores and compete with an already crowded fast food casual restaurant field. Shake Shack is a New York thing and the city is also the hub for the NYSE so the traders may be blinded from developing a subjective opinion. Investors think all the future Shake Shacks will be an instant success and the restaurateur may become another CMG. In these parts, rural Pennsylvania, many people will not be impressed. SHAK will blend in with the two dozen other fast food casual style restaurants popping up on each street corner. In some communities, knowing Shake Shack is a New York thing will only alienate the fledgling restaurateur. Time will tell.

As comedian Lesley Nielsen said when asked if he ever gambled or took chances, "Certainly, every time I order take out." This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.