Hedgeye CEO Keith McCullough is adding The Container Store (TCS) to the long side of Investing Ideas. Below is a brief note.
I don't think consensus is yet Bullish Enough on the US stock market, particularly on the HIGH SHORT INTEREST names (where they are implicitly bearish!)...
So I'll go right back to the wood with Retail analyst Brian McGough on a buy-signal in The Container Store (TCS) which has 17% short interest and the following intro note from McGough in his Retail Pro product:
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Takeaway: Forgotten retailer, new management, new industry tailwinds, new unit growth and margin opportunity. Solid Quad2 name. 3 year, 3 bagger. TCS closed out an era with solid results all around. The company put up EPS of $0.45 vs the Street at $0.38, and $0.05 last year. This was the last conference call for outgoing CEO (now Chairwoman) Melissa Reiff, as it marked Day 2 on the job for new CEO Satish Malhotra, former CEO of Retail for Sephora. The call had its share of farewells to Ms. Reiff and gratitude for her contributions. But quite frankly, this organization is ready for the management team and operational strategy to be turbo charged, and with the new CEO, we think the growth trajectory is about to get a shot in the arm. And the good news is that the new team has assumed control from a position of strength, with the business putting up significant momentum. As we outlined in our note from this weekend (see below), this name has ‘3-year, 3-bagger’ written all over it. |
Buying correction to a higher-low on decelerating volume,
KM
