Below is a note from CEO Keith McCullough on why we're adding Avalara (AVLR) to the short side of Investing Ideas:
On holiday shortened trading days you'll often see stocks moving disproportionately to the market on low-volume. That's what we're seeing in one of our favorite Tech Shorts, Avalara (AVLR) +3% today, trading on fumes.
Here's an interesting excerpt from Ami Joseph's Best Idea Short (Institutional Research product) report on AVLR:
"We are typically bullish on stocks like this. We like being LONG small software companies that are automating a manual process. Over time we think that process wins. We like stocks that have a large potential addressable market, even if growth is slow and steady. We featured BL (BlackLine Inc.) on this trend just a few months ago.
But something is amiss in the case of Avalara. We found so much hair in this process that we couldn’t stomach being LONG a stock like this even though it typically falls right into the sweet spot of our Long idea generation."
Sell on green,