Hedgeye CEO Keith McCullough is adding Casey's General Stores (CASY) to the short side of Investing Ideas. Below is a brief note.
Looking for another Consumer Staples (XLP) Sector Style Short that's green today on #decelerating volume? Casey's General Stores (CASY) is a newbie SELL Idea from Howard Penney and Jordan Minello.
It's also a way to play our #InflationAccelerating Macro Theme + #VapeSlowing news:
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"We suspect that this vaping crisis will be near-term noise, however the sudden spike of negative news could present a near term traffic headwind to the CASY Grocery & General Merchandise segment. Given that JUUL and vape products only represent a LSD percentage of sales the news in isolation is not likely to derail the CASY story. That said, we believe the read is negative on the margin and is likely to put incremental pressure on in-store traffic, at least in the near term. Management commentary on JUUL and other tobacco products has been quite positive on recent calls and has been helping to drive in-store comps and traffic in the face of eroding cigarette sales." |
Sell the bounce,
KM