ZOES: Removing Zoe's Kitchen from Investing Ideas

05/05/15 10:20AM EDT

Please be advised that we are removing ZOES from Investing Ideas today. Below is a brief note explaining why from Hedgeye CEO Keith McCullough.

*  *  *  *  *  *  *

This is a not a fundamental research call from Hedgeye Restaurants Sector Head Howard Penney – if your investment horizon is 1-3 years, this note may not matter to you.

From an intermediate-term risk management perspective (in line with my note from this weekend) this is a “grossing” down call of most things equities ahead of what may very well be a real US equity market correction.

ZOES: Removing Zoe's Kitchen from Investing Ideas - z yell

Other things to consider with a move like this (we call these Style Factors):

  1. Liquidity – total US equity market volume continues to decelerate on the up moves
  2. Size (meaning market cap) – Russell 2000 is signaling a potential phase transition from bullish to bearish
  3. Sector – with the company “news” out of the way, sector pressure associate with higher gas prices matters

KM

© 2024 Hedgeye Risk Management, LLC. The information contained herein is the property of Hedgeye, which reserves all rights thereto. Redistribution of any part of this information is prohibited without the express written consent of Hedgeye. Hedgeye is not responsible for any errors in or omissions to this information, or for any consequences that may result from the use of this information.