Hedgeye CEO Keith McCullough is adding Disney (DIS) to the short side of Investing Ideas. Below is a brief note.
Did the ROC (rate of change) just re-accelerate for US COVID Cases? A: Yes. Will it get worse in the next 2-3 weeks? A: Probably. See me Real Conversation with Virologist and Hedge Fund PM, Mike Taylor, for details on why. The replay is up now on HedgeyeTV.
Communications analyst Andrew Freedman's remains bearish on Disney (DIS) who is no winner on that Re-opening of Risk. Here's a summary excerpt of his recent Institutional Research note on why:
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Among the most severely impacted by COVID-19 due to the theme park exposure, we removed DIS as an active long in early March. We will always have an affinity for the company, but we don't believe the stock reflects the fundamental reality of 1) park closures 2) no sports 3) advertising declines and 4) cinema closures. While Disney+ continues to be very successful (50M subs), we don't think DTC is going to be enough to offset what is likely to be a slow recovery in the other businesses. |
Sell the bounce to lower-highs,
KM