UPDATE: Wingstop (WING) Slips as Kase Capital's Tilson Said to be Short

November 29, 2016 3:20 PM EST

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(Updated - November 29, 2016 3:29 PM EST)

(Updated - November 29, 2016 3:24 PM EST)

Wingstop (NASDAQ: WING) slipped to session low Tuesday, falling 4.5%. Tilson is said to be short the stock, according to ValueWalk and other sources.

Traders passed around slides of a presentation at Robin hood.

From the presentation:

  • Wingstop is a decent company with reasonable growth prospects
  • But its business is largely undifferentiated and faces ferocious competition from all sides
  • It has only proved that its business and brand work in two states, yet its valuation assumes that it can scale rapidly across the U.S. and abroad – a highly questionable proposition
  • Given that the stock is currently priced for perfection, if I’m wrong, it has little upside – and if I’m right, look out below!
  • A discounted cash flow analysis, even assuming favorable growth and margin increases for the next decade, yields a share price roughly half today’s level o Even at that price, the stock would still be richly priced at more than 30x trailing EPS
  • This is my 2 nd largest short position after Exact Sciences
  • There is plenty of borrow at negligible cost

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