Hedgeye CEO Keith McCullough is adding Live Nation (LYV) to the short side of Investing Ideas. Below is a brief note.
As you know, I covered basically all of my recent single stock shorts before the US stock market's 3-day ramp to lower highs...
What that means is that we are well positioned to start selling things, again, at big-lower highs within Bearish @Hedgeye TREND signals. One of those is Live Nation (LYV).
Here's a summary excerpt from Communications analyst Andrew Freedman's Institutional Research note on the name:
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We are adding Live Nation Entertainment (LYV) as an active short in the Hedgeye Communications Position Monitor. As the largest producer of live music concerts globally, Live Nation is among the hardest-hit companies from the pandemic in our coverage. While LYV is well-positioned to capitalize on the reopening of the experience economy, at 15x Adjusted AOI and 3.9x leverage (...on 2022 numbers), the market is already pricing in an optimistic recovery scenario. Additionally, we believe the street is basing LYV's valuation on numbers that overstate the company's true economic earnings due to acquisition accounting and adjusted financial metrics. |
Sell on green (so that you don't have to have an emotional time on red!),
KM
