Hedgeye CEO Keith McCullough is adding Marriott International (MAR) to the short side of Investing Ideas. Below is a brief note.
After buying/covering right when we should have earlier this week, I have been selling the close for the last 2 days...
While many are trying to "trade Russia", I'm risk managing the bigger picture: The Cycle. US GDP slowing, sequentially, from 7% to 0% is a big problem, especially for economically sensitive sectors like Hotels (MAR).
Todd Jordan and his team hosted an excellent research call on why MAR, DRH, etc. are current shorts. Here's an excerpt from that:
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Hotel development and unit growth is critical to the hotel brand business model and a big part of the long term bullish narrative in the investment community. The asset light business is very attractive long term model, but it doesn’t come without its share of risks for the stocks, especially coming out of downturns, and especially given the seemingly full valuations. The pipelines look leaky to us, and we’ll provide a lot of the data to explain why. |
Sell the bounce in MAR to lower-highs within its Bearish @Hedgeye TREND,
KM
