LINSANITY: The End of an Era

Jeremy Lin's move to the Rockets is expensive not just for Knicks fans but Modell's Sporting Goods. Remember in the 2011-2012 basketball season we had a little thing in New York called Linsanity? The hype surrounding Knicks point guard Jeremy Lin was incredible. Like the flavor of the month (Baloteli, Smarty Jones, etc.), everyone simply had to have Lin gear. And now it appears that manufacturing all that gear will cost Modell's to the tune of $1 million.

 

 

LINSANITY: The End of an Era  - MODELLS lin

 

 

With Lin poised to move to Houston, guess who’s sitting on 40,000 Lin-related items across its 150 stores? Modell’s Sporting Goods. The company is expected to dump these goods at true fire sale prices. Expect $5 t-shirts and the like. This will prove to be a huge headache and cost for the company. Per Hedgeye Retail:

 

If we assume a conservative $30 ASP per unit, this would equate to a 80%+ discount (t-shirts: $24.99, Jersey $89.99) to flush inventory resulting in over $1mm in lost sales. With Modell’s revenue nearing an estimated $700mm in 2011, each store (105 of 150 stores in tri-state area) could have nearly $7K of the quarter’s ~$1.03mm/store at risk.”

 

With that kind of loss, the least Lin could do is swing by the Times Square location and sign a couple of jerseys before he hops on his jet to Houston.


Did the US Economy Just “Collapse”? "Worst Personal Spending Since 2009"?

This is a brief note written by Hedgeye U.S. Macro analyst Christian Drake on 4/28 dispelling media reporting that “US GDP collapses to 0.7%, the lowest number in three years with the worst personal spending since 2009.”

read more

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.

read more

Cartoon of the Day: Crash Test Bear

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

read more

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.

read more

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

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

read more

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.

read more

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."

read more

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.

read more

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."

read more

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.

read more

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.

read more

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.

read more