Mr. Market is offering investors a great opportunity to short WeightWatchers (WTW) following the expected ‘Barron’s Bounce’ this morning.
Shares of WTW were flashing green amid a sea of market red after the financial publication posted a bullish note over the weekend on the heels of our secular short call.
Hedgeye analysts Tom Tobin and Hesham Shaaban released a distilled dive video on Friday laying out our secular short thesis. We believe a game-changing technological paradigm shift is underway which is prompting new entrants into the space and undercutting WTW's price and value proposition.
Our Google Trackers suggest that interest in WTW services is decelerating meaningfully. Our estimates suggest that 1Q14 could experience the slowest sequential member increase in the last 7 years