Now that we're Day 5 into Trump's US stock market correction, we can start to broaden our long exposure (which we didn't do at the all-time highs last week because our #process never has us buy at the top-end of the @Hedgeye Risk Range).
My Independent Research Team (read: no conflicts of interest like Old Wall brokered and banked "research") and I have plenty of ideas. Timing matters though. The SP500 is not only at the low-end of its @Hedgeye Risk Range right now, but the implied volatility PREMIUM on SPY has blown up to a new cycle high.
Eagle Materials (EXP) is currently an activist name that Jay Van Sciver pitched pre activists going activist! Here's a summary excerpt from Jay's Institutional Research note with his $120/share sum of the parts valuation:
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"We pitched the activist thesis earlier and see Eagle Materials as an excellent activist target. We expect others to join in to Sachem Head’s reasonable efforts to improve value creation. As we noted in our presentation, management felt embattled on both the money-losing proppant business & market valuation. The break-up could easily be worth north of $120/share, as we see it." |
Buy on red,
KM