Here's an interesting chart: Short interest as a percentage of float for the two most hated retailers -- RadioShack and J.C. Penney.
Yes - we know that JCP is a bad business. We get it. But guess what? RadioShack is even worse. But as the chart above shows, right now the equity market apparently does not agree.
While definitely not for the faint of heart, we're comfortable taking the other side of the current JCP sentiment. Its main problems are fixable. We think it has $1.30 in EPS power.
Editor's note: The brief excerpt above is from Hedgeye Retail Sector Head Brian McGough. To learn how you can subscribe to McGough's "Hedgeye Retail Pro" research click here.