My team has dug deep into this Stitch Fix deal. It's hot...no doubt. Hedgeye is obviously not on the deal -- or any deal -- ever (by design). Could it be one of those huge trades where you flip it when you get your 500 share allocation from Goldman? Probably. That's not the purpose of our call here.
We're going to lay out the underlying puts and takes for clients tomorrow -- at the same time buy-siders are deciding whether to put in orders -- and for how much.
Let's be clear about something -- while I'll have a TAIL $$$ value on what this name is likely worth -- and the fundamental path/execution that needs to happen to get there -- the SOLE purpose is for me to give you my sense as to the model -- regardless of what the bankers say. I'm 99% sure I can identify that TAM better than the company can. And will lay out the strategic considerations and capital invested needed to turn this into a Wayfair (that makes money) instead of a Trunk Club.
My team has gone through the net-roadshow ad nauseam. I haven't. And I won’t. Seriously...I won't watch it. My team has reviewed it about 10 times. But this presentation will be my complete 100% unbiased view of the model in the context of how and where it fits into the competitive landscape of #retail5.0, the customer connectivity -- how much it matters -- and the demographic wave that is altering the TAM by the day. The Amazon threat here is almost as big as it is with Food Retail. My team will openly debate me on key factors planted by the company as well as the underwriters. And we'll collectively get to the right answers.
I'll know by tonight where I'm coming out. And again, this is not a call on price action on the day. But it very much is about whether you want to own this business after the IPO emotion settles and financial reality sets in.
Call Details
Time: Monday, November 13th as 2:30PM EST
Toll Free:
Toll:
UK: 0
Confirmation Number: 13673609
Live Video Link: CLICK HERE
