Below is a brief note from CEO Keith McCullough on why we're adding Shake Shack (SHAK) to the short side of Investing Ideas today:
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Isn't it amazing to watch? Consensus chart chasers consistently selling on red at the low-end of the @Hedgeye Risk Range, then chasing higher the day after on green, that is… Thank goodness for that. Looking for names (that my analysts don't like) that are green this morning on #decelerating volume? How about the Shake Shack? As Howard Penney wrote recently to our Institutional Research subscribers in a note titled "Top 10 Reasons Why This Is A Disaster": the stock trades at 24x forward EBITDA and 95x P/E – why would you pay that much for a brand that hasn’t grown traffic in eight quarters? Sell the bounces to lower-highs, |
