Hedgeye CEO Keith McCullough is adding DraftKings (DKNG) to the short side of Investing Ideas. Below is a brief note.
I've been patient, because my process is...
Waiting in the weeds for some of our new Best Idea Shorts to get to the top-end of my Risk Range, like Gaming, Lodging, and Leisure analyst Todd Jordan's new SELL idea: Draftkings (DKNG)…
Here's an excerpt from his Institutional Research on the name:
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We're adding DraftKings (DKNG) as a Best Idea Short. We think the current valuation may be unsustainable in the face of a number of negative catalysts we foresee. Following our detailed review of the company, the industry landscape, and a refresh of our industry growth and TAM analysis, we believe the setup is skewing negative for $DKNG. After a very strong year, we see potentially negative catalysts that could reverse what has been very positive momentum for $DKNG and the broader Sports Betting and iGaming industries. |
Sellem at the top-end of the Risk Range,
KM