watch the replay below
If you tuned in for his appearance on the Hedgeye Investing Summit, you know that legendary short-seller Marc Cohodes takes no prisoners and suffers no fools when he speaks.
Tune in for this can't-miss webcast where Cohodes will be joined by Hedgeye Retail analysts Brian McGough and Jeremy McLean. On this webcast, McGough and Cohodes will lay out the short case on consumer goods maker Helen of Troy (HELE).
Here's a sneak preview based on McGough's "short playbook":
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HELE is not in the game of running brands successfully, its game is to use a zero interest rate environment, lever up, buy mediocre brands with no synergies, and use creative accounting to manufacture non-cash, non-GAAP EPS that the Street takes hook, line and sinker. With a levered balance sheet, permanently higher interest rates, and floating rate debt, the game it plays is OVER. Now it comes down to running its mediocre portfolio profitably, which we think this team is unable to execute upon. It needs to dramatically change its business model, divest arguably half its portfolio, de-lever, stem share loss, and drive profitable growth. This management team is one of the worst stewards of capital we’ve seen in Consumer. It’s like the second coming of Hanesbrands circa 5-years ago, or Newell 10-years ago, or Jones Apparel group 15-years ago. |
