Below is a brief note from CEO Keith McCullough on why we're adding Tapestry (TPR) to the long side of Investing Ideas today:
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With the SP500 down for the 4th trading day in a row (ok, one of those days it ended up closing flat), does the herd sell? Of course. Chase charts high, sell lower - that is the recipe to leading an under-performing life! As a matter of risk management #process, during market corrections we like to add back names that A) my analysts like and B) have corrected towards the low-end of the @Hedgeye Risk Range on C) #decelerating volume. Since Tapestry (TPR) broke out in August, it fits that profile. Fundamentally, Brian McGough thinks people are underestimating how this new TPR story will mimic the RL license takeback/renegotiation story circa 2003-2006. Sell side likely to upgrade in 12 months at $70. Pushback is fierce. That increases his conviction. Buy on red, KM |
