In the early days of Hedgeye – circa the Great Recession – we talked about ‘Bone or Bust’, which was our tag line for stocks that got obliterated to the low-mid single digits – a place that no self-respecting institution would dare tread. Names were either going to ZERO or setting up for massive rips that people would chase at 5x the price once the Macro environment cooperated, the fundamental (POD) setup lined-up, and the stocks got to market caps/daily trading volume that institutions could actually put capital to work. We’re back there again – only bigger and with more uncertainty. We’ll go through the list of single-digit ‘bones’, assess the near-term downside in Macro Quad 4, go through the PODs (rev, margins and cash flow), and see where the opportunity lies for big money to be made, on both sides.
Relevant Tickers: PLBY, BIRD, TDUP, PRPL, REAL, POSH, PRTS, AKA, CURV, CHS, DXLG, ROOT, SFIX, VNCE, UA, TLYS, TED-LON, BBBY, ARHS, KIRK, TCS, TTSH, COOK, WEBR, TUEM, COTY, CRCT, JOAN, NLS, PRTY, QRTEA, PTON, VRA
Links to Materials and Video Presentation to come next week.