Hedgeye CEO Keith McCullough is adding Big 5 Sporting Goods (BGFV) to the short side of Investing Ideas. Below is a brief note.
If you want to try to play The Game at the highest level, you need to understand Quad Shifts and the Factor and Sector Exposure pivots...
If you're new to this, it will take some time. A LOT more time than it took to panic/puke sell oil this morning on a 50-day Moving Monkey "signal"...
Retail analyst Brian McGough plays The Game at the highest level and is stealth on making what we call Micro Quad and Pod pivots - see The Arena @Hedgeye for user-forums discussing these...
He nailed the topping #process of this Small Cap Big 5 Sporting Goods (BGFV), for example. Here's some detail on the idea from his Retail Pro research subscription:
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Adding Big 5 Sporting Goods Short Side. This stock has been an absolute beast over the past year. It’s a 430-store sporting goods retailer based predominantly on the west coast, and pre-covid had extraordinarily volatile earnings with EPS ranging from -$0.20 to $1.25. It was a ~$4 stock with $0.40 in EPS pre-pandemic. Then it rode the wave of the sporting goods space, and put up a monstrous $3.74 over the trailing 12-months. To be clear, this is not a quality retailer like DKS, and does not have margin drivers like ASO. It’s also by no means a take-out candidate. Beginning in 2-quarters, this company faces huge sales and gross margin compares, and at $30 the market currently thinks that the company will comp the comp. |
Sell the bounce to lower-highs in Small Cap names that we don't like,
KM
