Below is a note from CEO Keith McCullough on why we're adding W.W. Grainger (GWW) to the short side of Investing Ideas:
|
Looking for single stock short ideas to go along with your Industrials (XLI) short position? Grainger (GWW) has bounced back to the top-end of my @Hedgeye Risk Range and Jay Van Sciver remains The Bear. Here's a recent update from Jay's Institutional Research notes on GWW: "Grainger remains a remarkable example of a company whose core problem, price compression leading to margin compression, somehow became the solution. Cutting prices to a ‘relevant’ level likely just pulls forward some of the erosion that would otherwise have set in more gradually." Sell on green, KM |
