Adding LMT: Removing NUS

06/17/16 03:36PM EDT

As we head into the weekend, we’re making a few changes in Investing Ideas. We’re removing NuSkin (NUS) from the short side as a point of process. “I don't like letting a loss run,” Hedgeye CEO Keith McCullough wrote today. “Winners stay.”

On that note, we’re adding Lockheed Martin (LMT) to the long side. Hedgeye Potomac Senior Defense Policy Advisor LtGen Emerson "Emo" Gardner USMC Ret. will send out a full report outlining our high-conviction long thesis next week.

In a recent note to Institutional Subscribers, General Gardner explained:

"Like the House, the Senate is moving quickly to increase investment in big ticket programs in the FY17 Pentagon spending bill. With a bipartisan vote of 30-1, the Senate Appropriations Committee released its FY17 defense spending bill report and it is very good news for defense prime contractors.

 

Like the House, the Senate bill "finds" $15B to fund most of the services' unfunded priority lists for more fighters, more ships and higher readiness levels that were not requested by the President. Unlike the House, the Senate "finds" the money from within the President's request itself rather than by underfunding the OCO budget."

 

Adding LMT: Removing NUS - lockheed

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