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