Toys R Us Bankruptcy Is A Long-Term Benefit For Carter's

5/28/18

On April 30, SeekingAlpha reported that Hedgeye, self proclaimed "pioneers in the independent investment research business", put Carter's Inc. (CRI) on their "Best Idea Short List". They are calling a 30% drop on the stock over the next year, which from then current trading levels would mean ~$70 a share, a price not seen since 2014. This would put CRI at a P/E ratio of just over 11 and a dividend yield of 2.2%. Considering that Carter's is still in growth mode both domestically and internationally, call for such a significant drop seems beyond silly to me. Back in July of 2017, Hedgeye made a similar short call on Carter's, hilariously preceding a full on break-out:

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