Notable news items and price action from the past twenty-fours along with our fundamental view on select names.

  • DPZ gained 10% yesterday on accelerating volume after posting better-than-expected earnings. 
  • TXRH gained 5.3% on accelerating volume.  I have a negative fundamental view of this stock and, over the past few months, the stock has underperformed many of its peers.
  • CAKE also gained on accelerating volume and my view of this stock is also negative.  This company is one that I believe is guiding below where inflation will ultimately be for their commodity basket this year.
  • CPKI reported earnings last night; EPS came in at $0.09 versus consensus of $0.06 but comparable restaurant sales came in at -2.1% versus consensus -1.4%.  2Q guidance is for EPS $0.20-0.21 and comparable restaurant sales flat-to-positive 1%.  Inflation guidance was raised from 2.5% for FY11 to 3% (which I still think is low).
  • GMCR announced the pricing of its common stock offering of an aggregate of 8,189,544 shares of its common stock at a price to the public of $71/share.
  • BWLD gained on accelerating volume. 
  • BAGL gained on accelerating volume and the company posted weaker-than-expected earnings after the close last night.
  • CBOU gained on accelerating volume and posted earnings above consensus with the benefit of a one-time tax benefit.
  • SBUX is hosting a half-price Frappuccino happy hour today.  Frappuccino Happy Hour will be held daily through Sunday, May 15.
  • SBUX featured in the “Heard on the Street” column in the Wall Street Journal yesterday.  The column detailed that SBUX is trading at 25x FY11 EPS and may be rich with coffee prices more than doubling in the last year. 




Howard Penney

Managing Director

Cartoon of the Day: 'Biggest Tax Cut Ever'

President Donald Trump's economic team unveiled what he called last week, "the biggest tax cut we’ve ever had.” Before you get too excited about that hang on a sec. "Trump Tax Reform ain’t gettin’ done anytime soon," Hedgeye CEO Keith McCullough wrote in today's Early Look.

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Neurofinance: The Psychology Behind When To Sell A Bull Market

"Most momentum investors stay invested too long, under-reacting and holding tight after truly bad news finally arrives to break the trend," writes MarketPsych's Richard Peterson.

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Energy Stocks: Time to Buy the Dip? | $XLE

What the heck is happening in the Energy sector (XLE)? Energy stocks have trailed the S&P 500 by a whopping 15% in 2017. Before you buy the dip, here's what you need to know.

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Cartoon of the Day: Hard-Headed Bears

How's this for "hard data"? So far, 107 of 497 S&P 500 companies have reported aggregate sales and earnings growth of 4.4% and 13.2% respectively.

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Premium insight

McCullough [Uncensored]: When People Say ‘Everyone is Bullish, That’s Bulls@#t’

“You wonder why the performance of the hedge fund indices is so horrendous,” says Hedgeye CEO Keith McCullough, “they’re all doing the same thing, after the market moves. You shouldn’t be paid for that.”

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SECTOR SPOTLIGHT Replay | Healthcare Analyst Tom Tobin Today at 2:30PM ET

Tune in to this edition of Sector Spotlight with Healthcare analyst Tom Tobin and Healthcare Policy analyst Emily Evans.

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Ouchy!! Wall Street Consensus Hit By Epic Short Squeeze

In the latest example of what not to do with your portfolio, we have Wall Street consensus positioning...

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Cartoon of the Day: Bulls Leading the People

Investors rejoiced as centrist Emmanuel Macron edged out far-right Marine Le Pen in France's election day voting. European equities were up as much as 4.7% on the news.

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McCullough: ‘This Crazy Stat Drives Stock Market Bears Nuts’

If you’re short the stock market today, and your boss asks why is the Nasdaq at an all-time high, here’s the only honest answer: So far, Nasdaq company earnings are up 46% year-over-year.

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Who's Right? The Stock Market or the Bond Market?

"As I see it, bonds look like they have further to fall, while stocks look tenuous at these levels," writes Peter Atwater, founder of Financial Insyghts.

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Poll of the Day: If You Could Have Lunch with One Fed Chair...

What do you think? Cast your vote. Let us know.

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Are Millennials Actually Lazy, Narcissists? An Interview with Neil Howe (Part 2)

An interview with Neil Howe on why Boomers and Xers get it all wrong.

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