Notable news items/price action from the past twenty-four hours.

  • CMG downgraded to Neutral from Outperform at Cowen.
  • CMG’s new ShopHouse Southeast Asian Kitchen name finally hit the mainstream yesterday.  Sell-side analysts clamored to take credit for being first.  Hedgeye readers knew of the name when we posted on it on 1/27.
  • GMCR gained 6.6% on low volume.  The speculation embedded in this move is – as I have been writing ad nauseum – misplaced.  See my posts yesterday and my first post on the SBUX/GMCR story from January.   Keybanc upgraded the stock to a Buy from Hold this morning. 
  • PNRA was cut to Outperform from Strong Buy.
  • SBUX CEO Howard Schultz made $36.8 million last week by exercising and selling stock options set to expire in the fall.
  • DPZ’s U.K. & Ireland PLC said full-year profit fell on a one-off credit charge.   The company may pass on a 1 to 2% increase in food costs to franchises this year, according to CFO Dale Ginsberg.  
  • Former McDonald’s executive Mike Roberts is now the CEO of LYFE, a new fast food chain with options for vegans and vegetarians. 
  • BWLD gained on accelerating volume on a day of insider selling.
  • EAT declined on accelerating volume.
  • YUM gained on accelerating volume.



Howard Penney

Managing Director

7 Tweets Summing Up What You Need to Know About Today's GDP Report

"There's a tremendous opportunity to educate people in our profession on how GDP is stated and projected," Hedgeye CEO Keith McCullough wrote today. Here's everything you need to know about today's GDP report.

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Cartoon of the Day: Crash Test Bear

In the past six months, U.S. stock indices are up between +12% and +18%.

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GOLD: A Deep Dive on What’s Next with a Top Commodities Strategist

“If you saved in gold over the past 20 to 25 years rather than any currency anywhere in the world, gold has outperformed all these currencies,” says Stefan Wieler, Vice President of Goldmoney in this edition of Real Conversations.

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Exact Sciences Up +24% This Week... What's Next? | $EXAS

We remain long Exact Sciences in the Hedgeye Healthcare Position Monitor.

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Inside the Atlanta Fed's Flawed GDP Tracker

"The Atlanta Fed’s GDPNowcast model, while useful at amalgamating investor consensus on one singular GDP estimate for any given quarter, is certainly not the end-all-be-all of forecasting U.S. GDP," writes Hedgeye Senior Macro analyst Darius Dale.

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Cartoon of the Day: Acrophobia

"Most people who are making a ton of money right now are focused on growth companies seeing accelerations," Hedgeye CEO Keith McCullough wrote in today's Early Look. "That’s what happens in Quad 1."

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People's Bank of China Spins China’s Bad-Loan Data

PBoC Deputy Governor Yi says China's non-performing loan problem has “pretty much stabilized." "Yi is spinning. China’s bad-debt problem remains serious," write Benn Steil and Emma Smith, Council on Foreign Relations.

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UnderArmour: 'I Am Much More Bearish Than I Was 3 Hours Ago'

“The consumer has a short memory.” Yes, Plank actually said this," writes Hedgeye Retail analyst Brian McGough. "Last time I heard such arrogance was Ron Johnson."

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Buffalo Wild Wings: Complacency & Lack of Leadership (by Howard Penney)

"Buffalo Wild Wings has been plagued by complacency and a continued lack of adequate leadership," writes Hedgeye Restaurants analyst Howard Penney.

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Todd Jordan on Las Vegas Sands Earnings

"The quarter actually beat lowered expectations. Overall, the mass segment performed well although base mass lagging is a concern," writes Hedgeye Gaming, Lodging & Leisure analyst Todd Jordan on Las Vegas Sands.

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An Update on Defense Spending by Lt. Gen Emo Gardner

"Congress' FY17 omnibus appropriation will fully fund the Pentagon's original budget request plus $15B of its $30B supplemental request," writes Hedgeye Potomac Defense Policy analyst Lt. Gen Emerson "Emo" Gardner USMC Ret.

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Got Process? Zero Hedge Sells Fear, Not Truth

Fear sells. Always has. Look no further than Zero Hedge.

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