NEW YORK (Real Money) -- Maybe it's the name. Maybe it's the symbol. Whatever it is, when shares of El Pollo Loco (LOCO) -- the "crazy chicken" restaurant -- exploded higher on a second day after a robust opening, it once again inspired a whole new level of top-calling.
Is it justified? Does a stock that comes public at $16 that then goes to $19 on its first day and leaps to $34 on its second day make any sense at all? Can it signify something? Or is it a stock move filled with sound and fury, signifying nothing?
TheStreet's Jim Cramer shares his thoughts on where shares of El Pollo Loco will go next:
First, we have to put this move in context, and the context that is GoPro (GPRO), which had a very similar move. The niche camera company, which is trying to grow into a full-blown ecosystem, came public at $24 -- the high end of the range. It jumped 32% on the first day to $31, then rallied to $35 the next day and then galloped to $40 before it peaked at $48. So El Pollo Loco might not be so loco. The GoPro move made sense in some ways because this is a popular company, particularly among teens, with a hot-selling product that conceivably has staying power. Plus, it's profitable.