Hedgeye CEO Keith McCullough is adding Grocery Outlet (GO) to the long side of Investing Ideas. Below is a brief note.
Wait on it... another Consumer Staples Long Idea from the Howard Penney/Daniel Biolsi combo, Grocery Outlet (GO).
Per their Institutional Research note on the name this morning:
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"Yesterday a holder of Grocery Outlet announced a secondary offering consisting of 10M shares plus an over-allotment of 1.5M. The shares are not primary. It was the company's third secondary offering since it went public last year. Grocery Outlet's focus on extreme value consumables is well-positioned for the recessionary consumer spending environment we will be in. The company provided a financial update in conjunction with the offering. Q1 comps accelerated to 17.4% from 5.1% sequentially." |
Long of anti-fragile business models during Deep #Quad4, indeed.
KM
