prev

July 14, 2015

July 14, 2015 - Slide1

 

BULLISH TRENDS

July 14, 2015 - Slide2

July 14, 2015 - Slide3

July 14, 2015 - Slide4

 

BEARISH TRENDS

July 14, 2015 - Slide5

July 14, 2015 - Slide6

July 14, 2015 - Slide7

July 14, 2015 - Slide8

July 14, 2015 - Slide9

July 14, 2015 - Slide10

July 14, 2015 - Slide11
July 14, 2015 - Slide12

July 14, 2015 - Slide13



KATE: Removing Kate Spade from Investing Ideas

Takeaway: We are removing Kate Spade from Investing Ideas today.

Please note we are removing Kate Spade (KATE) from Investing Ideas today. According to Hedgeye CEO Keith McCullough:

 

This is a PM’s call. Our Retail Sector Head Brian McGough’s research view hasn’t changed. But I’d much rather come back to an idea like this once the style factors and macro risks to the #LateCycle consumer play out.

 

While I'm glad I didn't have you capitulate and sell last week's lows in KATE, I'll be less glad if we don't take this bounce to lower-highs as a selling opportunity. Small cap, high beta - not the Style Factors in the market I want to be chasing and/or holding onto here.

 

KATE: Removing Kate Spade from Investing Ideas - z ka

 


Early Look

daily macro intelligence

Relied upon by big institutional and individual investors across the world, this granular morning newsletter distills the latest and most vital market developments and insures that you are always in the know.

Three Reasons Why Howard Penney Is Now Bullish on McDonald’s

After spending almost four years being bearish on McDonald’s, Hedgeye Managing Director and Restaurants Sector Head Howard Penney has turned positive on shares of MCD.

 

Three Reasons Why Howard Penney Is Now Bullish on McDonald’s - z mcd

 

Penney recently presented his granular Best Long Idea Black Book outlining his bullish case for the company. His bullish call is predicated on three key points:

 

  1. The worst is behind us with a favorable risk/reward setup and a plan in place, now  it’s all about execution;
  2. MCD is putting the customer first by optimizing the menu, decreasing the number of items, improving products, adjusting pricing, and adding new technology to enhance the customer experience
  3. MCD is lowering the cost structure through a number of key initiatives that will start hitting the P&L in 3Q15 at the same time sales driven initiatives hit the top-line.

 

Penney sees approximately 15%-30% upside in McDonald’s from here.

 

***If you’re an institutional investor and would like to see the MCD Black Book from July 10th or any other additional research from Howard please email sales@hedgeye.com


ACA TRACKER UPDATE | PER ENROLLEE SPENDING REMAINS ELEVATED

Takeaway: Medicaid spending still strong through 2Q15, positive for earnings.

ACA Medicaid enrollment and spending

The data through 2Q15 shows a persistent positive consumption trend driven by the Medicaid expansion under the ACA.  Per enrollee spending remains elevated, which is consistent with pent-up demand of the newly insured.  Below, we forecast Medicaid enrollment through 2016 using the rate of change for the most recent months of enrollment data.  We expect growth of Medicaid enrollment to slow into 2H15 while continuing to monitor per enrollee spending for signs of a reversion to Pre-ACA levels.  Slowing enrollment and negative per enrollee spending in future periods remains a key risk for the US Medical Economy.

 

ACA TRACKER  UPDATE |  PER ENROLLEE SPENDING REMAINS ELEVATED - MCAID enrollment and spending

ACA TRACKER  UPDATE |  PER ENROLLEE SPENDING REMAINS ELEVATED - MCAID per enrollee spending

ACA TRACKER  UPDATE |  PER ENROLLEE SPENDING REMAINS ELEVATED - Medicaid enrollment

 

Please call or e-mail with questions.

 

Thomas Tobin

Managing Director 

@HedgeyeHC

 

Andrew Freedman

Analyst

@HedgeyeHIT


CALL INVITE | IS CONSENSUS RIGHT ON CHINA?

WATCH THIS PRESENTATION LIVE BELOW


 

This Thursday, July 16th at 1:00PM ET, we invite you to join us live for a conference call on China. Led by senior macro analyst Darius Dale, the call will detail our revised outlook for the Chinese economy, our expectations for monetary and fiscal policy, as well as the associated investment implications.

 

KEY DISCUSSION TOPICS:

  • Correction or Collapse?: Does the recent plunge in Chinese share prices represent an attractive buying opportunity (as several major sell-side and buy-side firms have suggested) or is it a harbinger of another leg down in the Chinese economy and a bearish phase transition across Chinese financial markets?  
  • Asset Class “Re-rotation” Risk: Our analysis is showing nascent signs of recovery throughout China’s real estate market. Will a continued positive inflection bode poorly for Chinese stocks?
  • Renminbi Internationalization Impact: What impact, if any, will China’s push to make the CNY an international reserve currency have on the country’s financial markets and how will the recent crash in Chinese equities impact this drive?

 

CALL DETAILS:

  • U.S. Toll Free:
  • U.S. Toll:
  • Confirmation Number: 13614418
  • Materials: CLICK HERE

 

As always, our prepared remarks will be followed by a live, anonymous Q&A session. Please submit your questions to .

 

Also, for those of you who cannot join us live, we will be distributing a replay video of the call shortly after it concludes.

 

Kind regards,

 

The Hedgeye Macro Team

 

CALL INVITE | IS CONSENSUS RIGHT ON CHINA? - 1


get free cartoon of the day!

Start receiving Hedgeye's Cartoon of the Day, an exclusive and humourous take on the market and the economy, delivered every morning to your inbox

By joining our email marketing list you agree to receive marketing emails from Hedgeye. You may unsubscribe at any time by clicking the unsubscribe link in one of the emails.

next