LIZ: Buying on Sale

Keith added LIZ to the Virtual Portfolio into the close on today’s high Beta pullback just above his quantitative model’s TRADE line of support.  

 

No change to our thesis on the name here but today’s pull back is another opportunity to get involved with our favorite sm-mid cap growth story that we expect to double in 2012. Now that LIZ is a double-digit stock, has largely shed its debt burden, and is beginning to reveal its top-line growth potential, investors are starting to take notice. We think the Street’s numbers are still too low and the stock is trading at a significant discount to the value of Kate Spade alone. Investors will start looking at $1 in earnings power in three years.

 

Below are links to our 2/27/12 preview to the fourth quarter as well as our take headed out of the print. We also reflect on the 3/13/12 announcement of George Carrera to replace Andy Warren as CFO.

 

LIZ: Much Beneath the Surface (3.13.12)

 

LIZ: Noise = Buying Opportunity (3.01.12)

 

LIZ Q4 Preview (2.27.12)

 

LIZ: Buying on Sale - LIZ TTT

 



Another French Revolution?

"Don't be complacent," writes Hedgeye Managing Director Neil Howe. "Tectonic shifts are underway in France. Is there the prospect of the new Sixth Republic? C'est vraiment possible."

read more

Cartoon of the Day: The Trend is Your Friend

"All of the key trending macro data suggests the U.S. economy is accelerating," Hedgeye CEO Keith McCullough says.

read more

A Sneak Peek At Hedgeye's 2017 GDP Estimates

Here's an inside look at our GDP estimates versus Wall Street consensus.

read more

Cartoon of the Day: Green Thumb

So far, 64 of 498 companies in the S&P 500 have reported aggregate sales and earnings growth of 6.1% and 16.8% respectively.

read more

Europe's Battles Against Apple, Google, Innovation & Jobs

"“I am very concerned the E.U. maintains a battle against the American giants while doing everything possible to sustain so-called national champions," writes economist Daniel Lacalle. "Attacking innovation doesn’t create jobs.”

read more

An Open Letter to Pandora Management...

"Please stop leaking information to the press," writes Hedgeye Internet & Media analyst Hesham Shaaban. "You are getting in your own way, and blowing up your shareholders in the process."

read more

A 'Toxic Cocktail' Brewing for A Best Idea Short

The first quarter earnings pre-announcement today is not the end of the story for Mednax (MD). Rising labor costs and slowing volume is a toxic cocktail...

read more

Energy Stocks: Time to Buy? Here's What You Need to Know

If you're heavily-invested in Energy stocks it's been a heck of a year. Energy is the worst-performing sector in the S&P 500 year-to-date and value investors are now hunting for bargains in the oil patch. Before you buy, here's what you need to know.

read more

McCullough: ‘My 1-Minute Summary of My Institutional Meetings in NYC Yesterday’

What are even some of the smartest investors in the world missing right now?

read more

Cartoon of the Day: Political Portfolio Positioning

Leave your politics out of your portfolio.

read more

Jim Rickards Answers the Hedgeye 21

Bestselling author Jim Rickards says if he could be any animal he’d be a T-Rex. He also loves bonds and hates equities. Check out all of his answers to the Hedgeye 21.

read more