Hedgeye CEO Keith McCullough is adding New Oriental (EDU) to the short side of Investing Ideas. Below is a brief note.
It's a lot easier on the eyes to short stocks on a VIX move towards 21 than on the move slicing downward dog through 31 to 21! Timing matters.
Going through my Factor Funnel for names my analysts do not like that have LOW Short Interest that are also at the top-end of my Risk Range on #decelerating volume.
Felix Wang's SELL On New Oriental Education (EDU) fits that funnel. Here's a brief excerpt from his recent Insititutional Research note on the name: Short EDU | Shocking Negative Margins + Lower Growth Is the New Normal
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EDU printed its first negative operating margin in two years which led to a sizable bottom line miss on a comparable basis. A part of my bear thesis on EDU has been my skepticism towards their long-term operating margin target of 17.5%. |
Sell on green,
KM
