“If I’m right, this may prove to be the best short call of my 23-year career.”
Those words were written by veteran Hedgeye Retail analyst Brian McGough about his short call on Hanesbrands (HBI).
Since he issued his call on May 2, 2016, shares of HBI have fallen 56%. During that time, the S&P 500 has gained 22%.
McGough's research team is presenting a new Black Book this Thursday at 2:00pm ET to review why HBI is still shortable after being shellacked in 2018. The new consensus view on HBI is that it is no longer shortable given another 40% rout in 2018 where it set new 5-year lows.
And we will explain why there could still be another 25% downside from here, though ultimately our bear case model is still the most likely over a TAIL duration, which gets us to a sub-$5 stock.
Don’t go chasing this name because it looks cheap, says McGough.
If you are an institutional investor and would like access to this call, email firstname.lastname@example.org.