Editor's Note: We received considerable positive feedback from our subscribers this past weekend after we decided to highlight one of our favorite names on the short side right now ... Royal Caribbean. In light of the fact that we have grown increasingly bearish on U.S. equities, and do not see many attractive long opportunities currently, we give you Hibbett Sports.
Below is a brief note from Hedgeye CEO Keith McCullough explaining why we are adding HIBB to Investing Ideas as a short. Retail Sector Head Brian McGough will provide a fuller explanation in this weekend's update.
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Getting bearish (on US Equities) is a process... and I think we waded into what will now be a net short position (more shorts in US Equities than longs) at a measured pace.
We're short a few index/sector exposures (IWM and XLF) and now adding single stocks, as we received overbought signals.
The Bear case for Hibbett from Brian McGough has not changed.
Sell/Short Green (from Chicago),
KM