Hedgeye CEO Keith McCullough is adding Yeti Holdings (YETI) to the short side of Investing Ideas. Below is a brief note.
Looking for shorts? Let's go to our cleanup hitter so far in #Quad2, Brian McGough, for another one in Yeti Holdings (YETI)...
Here's an excerpt from Brian's popular Retail Pro subscription on the name:
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Takeaway: The fundamental set-up and negative rate of chg should catalyze people to look at EPS, EBITDA and FCF instead of blindly valuing on Sales. We’re adding YETI to our Best Idea Short list and think that there’s 60%+ downside over a TAIL duration. We’ve been patiently waiting to add this name to our Best Ideas but wanted to de-risk the 4Q print, as we knew the results were tracking well. We were vocal about that even when upping this on our Short Bias list earlier this week. But apparently so was the Street as the stock traded down 8% on a 20% EPS beat and bullish guide. We’re far from too late in elevating this short to our Best Ideas List (first made the call at $68 last month – stock closed at $72 today). The upside catalyst is gone, and it just signaled its 1st lower high with accelerating volume on declines (bearish trading inflection). |
Sell the bounce to lower-highs,
KM