Editor's Note: Our Internet & Media analyst Hesham Shaaban has been a bear on a tear. His contrarian calls on Twitter and Yelp are just two of many non-consensus calls he's made which have served investors very well. Here's a quick recap of why it pays to listen to what he's saying.
Related tickers: YELP, TWTR, BABA, P, WTW, EHTH
* * * * * * *
Just over a year ago, Hesham explained on HedgeyeTV why he's bearish on YELP for the long term. Shares are down over -30% since.
he echoed his concerns again to Charlie Gasparino on Fox business last month. the stock is down -10% since his appearance.
Here's a cartoon. We like cartoons (and our cartoonist). A lot.
Here's a bonus piece of unlocked research Hesham wrote on YELP articulating his BEARISH CASE. He's written a lot more. We just wanted to give you a little taste. CLICK THE WAD OF CASH TO READ IT.
On a related note...
here's a screen grab of a report he sent to our customers earlier this week ... ahead of Twitter's bomb. You can click the image to enlarge. (We'd show you the whole thing, but our customers wouldn't like that and we have families to feed.)
Here's another cartoon. Did we mention we really like cartoons?
And last (but certainly not least)
Here's an abridged excerpt from yesterday’s Morning Newsletter written by CEO Keith McCullough discussing Hesham's myriad non-consensus calls. It's definitely worth the read. (While we're at it, it probably makes sense to shell out the dollar a day it takes to subscribe to our Morning Newsletter too.)
Excerpt from Keith McCullough's Morning Newsletter:
During yesterday’s meeting, circa 3:15PM, one of our analysts slammed his laptop and left the room in a frenzy…one of our Hesham Shaaban’s Best Short Ideas, Twitter (TWTR) was blowing up!
Fat finger on the pre-market close release. Stock down 18% in a New York minute. Halted. #Boom!
And the Hedgeyes smiled.
There’s something about building an independent think tank that prides itself in SELL ideas that gets me up in the morning. As most of you know, building a repeatable #process on the short side is not an easy thing to do. That’s why we’re doing it…
…While you can criticize Shaaban for literally never having presented a Best Long Idea (yet), he’s nailed the following names to the proverbial NHL playoff boards in the last 18 months (i.e. since we let him start publishing on his own names):
- Weight Watchers (WTW)
- eHealth (EHTH)
- Pandora (P)
- Yelp! (YELP)
- Alibaba (BABA)
In other words, what he really needs next is to get run-over in one of these things. Because no analyst I have ever worked with stays this good (on the short side) for this long, in an up market!
I obviously don’t want the man to get crushed. But reality is that everyone gets tagged in this business, eventually – and that’s how we all learn. But if you listen to Shaaban talk through his ideas, he’s constantly talking about not only what he doesn’t know… but what the management teams he follows don’t know either.
*****To learn more about how you can access Hesham's research ping email@example.com.