Hedgeye CEO Keith McCullough is adding GameStop (GME) to the long side of Investing Ideas. Below is a brief note.
At VIX 25, I'm a buyer of #Quad2 USA Small-Mid Cap Stocks that my analysts like. Consensus doesn't think of it that way. They hedge and/or sell on red. They’ve been doing so for a month.
One recent name Retail analyst Brian McGough added to the long side of his Retail Pro product is Gamestop (GME). It's for sale (-8%) this morning. You should be capitalizing on that.
Here's an excerpt from his recent research note:
|
We hosted a call this week with a 60-page slide deck outlining our Best Idea Long call on Gamestop (GME) and Best Idea Short call on Best Buy (BBY). The feedback has been polarizing – particularly on the Gamestop front. People either love the name, or absolutely hate it – that’s probably why 100% of the float is short. We think there that the ‘this business is going all digital’ call lacks significant context as to where were are in the console and software cycle, the need for physical stores for a certain portion of the customer base, and what a new management team, and (newly) activist investor (Ryan Cohen) can do to enact significant change to make the concept a critical point of interaction and distribution for the gaming community. I view our $30 price target as something of a softball. |
McGough will be hosting a call on this at 1230PM ET. We're looking for another squeeze of consensus shorts,
KM
