Hedgeye CEO Keith McCullough is adding Restoration Hardware (RH) to the long side of Investing Ideas. Below is a brief note.
Patience remains your largest Asset Allocation...
When you have that (and a lot of places you can invest in a Go Anywhere #process) embedded in your research & risk management #process, that is.
Wait and watch for buying opportunities and be indifferent to buying Cocoa (NIB) or RH!
Today, RH is for sale for whatever reason to the low-end of my Risk Range. Here's a good fundamental research excerpt from Brian McGough's Retail Pro subscription on the name (he's been The Axe on RH for years):
|
Moving RH to our Best Idea Long List. This might seem like an odd move, because we’re already the biggest long-term RH bulls on the Street, having ridden the stock since $26 (it’s now at $662), and a TAIL value of $1,700. But we were waiting for an appropriate time with more controversy, perhaps around the complexity of its move into Europe or a slowdown in the US to ‘pound the table’ and move this name back to our Best Ideas List. But we think estimates are low in 2H, and think that the Street is materially undermodeling the impact of RH’s move outside the US – with the opening of RH England in 3Q (i.e. next month). |
Buyem on red, because you can,
KM
