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REPLAY on HedgeyeTV | Tom Tobin on What's Next For VRX and Much More

Healthcare Analysts Tom Tobin and Andrew Freedman were live in the studio earlier today. Watch the replay below. 

 

 
CLICK HERE to download the slides associated with this presentation.

 

Topics will included:

  • JOLTS release this morning
  • Update on MEDNAX (MD)
  • Key takeaways from their proprietary maternity tracker
  • And what's next for Valeant (VRX)

McCullough: 'I'd Short Half of What That Guy Just Said'

Hedgeye CEO Keith McCullough joined Fox Business host Liz Claman this afternoon to discuss how to invest following a dovish March Fed meeting. In the panel was U.S. Global Investors CEO Frank Holmes and Jefferies Chief Financial Economist Ward McCarthy.


Cartoon of the Day: Atlas Shrugged

Cartoon of the Day: Atlas Shrugged - bull atlas 8 ball 03.16.2016

 

The most recent round of permabull narratives rests on an increasingly shaky foundation.


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20 Proprietary Risk Ranges

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McCullough: The Belief System Is Breaking Down

 

In this excerpt from The Macro Show this morning, Hedgeye CEO Keith McCullough responds to a subscriber’s question on investing in a world riddled with global central bank interventionism.


Don't Hold Your Breath... Fed Can't Fix Broken US Economy

Takeaway: Whatever the Fed decides to do or say today, this week's industrial production and retail sales data reaffirms our dour US economic outlook.

Don't Hold Your Breath... Fed Can't Fix Broken US Economy - fed forecast crystal ball

 

Investors are waiting with bated breath for the FOMC statement and Janet Yellen's testimony. Unfortunately, no matter what the Fed does or Yellen says today, the Fed is not omnipotent and cannot arrest economic gravity. 

 

Case in point... today's industrial production number which yet again affirms our view that sections of the U.S. economy are already in recession.

 

 

Or how about Retail Sales? That too was disappointing. 

 

 

(...That's just this week's data.) 

 

We've got a 73-page slide deck laying out our view that U.S. economic growth is stalling. Here's a taste:

CLICK TO WATCH 

 

But why pay attention to all of this when Janet Yellen is simply going to tell us it's "all good" at 2:30PM ET?

 

Don't Hold Your Breath... Fed Can't Fix Broken US Economy - Yellen data dependent cartoon 11.18.2015


Chipotle ... Delusional

Takeaway: Flying Blind + Blind Faith = a great SHORT selling combination...

Editor's Note: This is a brief excerpt from a recent institutional research report written by our Restaurants team. If you would like access to our research please email sales@hedgeye.com.

 

Chipotle ... Delusional - z chip

 

Chipotle (CMG) is on our Hedgeye Restaurants Best Ideas list as a SHORT.

 

HEDGEYE OPINION

Even with a disastrous sales update after the close, we still feel like we’re fighting an uphill battle on the CMG short call, but make no mistake, our conviction level is very high!  The CMG management team is flying blind and has no practical experience in recovering from one of the greatest foodborne illness disasters ever experienced by a restaurant company.  That opinion and the blind faith the street has put in this management team makes for a great SHORT selling combination.   

 

THE CURRENT SITUATION

In part, our conviction level remains high because the company was experiencing growth related issues in 3Q15, prior to the company’s 4Q15 sales related issues.  Bottom line, CMG should have slowed unit growth following the 3Q15 earnings and not accelerated it! The three biggest problems the company faced then and still face today are:

  1. Limited supply of quality real estate
  2. Significantly higher lease rates for the sites they do open
  3. Lower average unit volumes

 

Taken together, all three suggest significantly lower returns and an increased likelihood that the company will not get the units open on time, or will compromise the quality of the openings to meet Wall Street expectations.

 

The other key to the SHORT case...

 

***Please email sales@hedgeye.com if you are interested in our institutional research.


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