Today reinforces why $W Wayfair shareholders should be concerned. Multi-channel – Valuation – Supply Chain

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Citron Reiterates Wayfair Short Term $50 Target

Grocery stocks are getting hit hard today on the fear of Amazon disrupting their supply chains.  Similarly, as Amazon enters furniture, it breaks Wayfair’s strategic hold on it supply chain.  (MAJOR STATED RISK FACTOR IN WAYFAIR FILINGS)

 

  1. The Gorilla Enters the Room. The market reactions we see today in Kroger, Target, and WalMart (all profitable) show the fear in the market for businesses vulnerable to competition from Amazon.

 

  1. The importance of multi-channel retailing. $AMZN proves that some
    e-commerce solutions absolutely require local physical presence: Groceries are one, and furniture is the other.  Case-in-point: Amazon’s new “Unified Delivery with Services” program for furniture.

 

  1. Real companies get real valuations: $WFM got bought for 10.7 times next 12 months EBIDTA.  $W is a throwback to 1999, a business where there’s never EBIDTA, just cumulative losses.

  1. Profits? Never ever.  If Wayfair couldn’t make money before Amazon was a competitor, how can they possibly ever become profitable with Amazon pushing hard into their only marketplace?

 

  1. Forget Bailout by Walmart. Do not forget WalMart’s new national ad campaign rollout for Hayneedle – don’t expect any bailout for Wayfair from Bentonville.

 

  1. “Amazon Who?” Whenever an online retailer’s CEO says on a conference call he is “not concerned about Amazon” — and dismisses them saying they sell “batteries and books” … it is time to be concerned about your CEO.

 

  1. Follow the Money: Insider selling last 6 months for Whole Foods = $2 million, for Wayfair last 6 weeks $220 million.

 

  1. Analyst Shmanalyst. The analysts are so lost that the last upgrade on Wayfair (Piper) did not even have the word “Amazon” in the report.  Analyzing an e-commerce company without acknowledging Amazon is like writing about the 2017 NBA season and refusing to mention the  G.S. Warriors.

 

Cautious Investing to All.

Citron Research exposes Exact Sciences and PROVES beyond ANY doubt why this stock will soon be cut in half

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Every Man and Woman Over The Age of 50 MUST read this report from Citron Research

Short term target:  $20.

3 to 5 Years:  Likely Single Digit, Potential 0.

Exact Sciences (NASDAQ:EXAS) pushes a cancer test (Cologuard) to the public, inferior by its own admission, and loses money doing it.  That is why this $4 billion company is mainly owned by passive investing ETFs or other healthcare baskets.

More importantly, as Citron will expose, the key metrics not disclosed by Exact Sciences are getting worse, while Medicare pricing inefficiencies end next January and investors will be left with a decaying asset with no terminal value.

This stock is a poster child for what goes wrong when Wall Street gets ahold of a health care concept with no discrimination for whether its good or bad medicine.

For the rest of the story you won’t read anywhere else, click here: 

 

FleetCor — Or is it FeeCor or FleeceCor?

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As the truth about FleetCor (NYSE:FLT) becomes more apparent to regulators and its customers, the stock should hit a short-term price target of $100.

Citron analyzes a company who has become so insanely financially dependent on fleecing its own customers, that its financials are seriously imperiled and its valuation is totally out of touch with reality.

For the rest of the story that you won’t see anywhere else, Click Here …

 

Could TransDigm be the Valeant of the Aerospace Industry?

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Wall Street:  Be Careful!  President Trump has become to Aerospace what Hillary was to Pharmaceuticals

 

President Trump has promised to end the long-standing, infuriating tradition of “sticking the US Government with tab”.  He has already made lowering prices for military aircraft a pillar of his transition into office.

President Trump has already met with the both Boeing and Lockheed Martin, who have promised to lower the prices for Air Force One and the F-35 fighter jet program.  These lower prices will no doubt trickle down to subcontractors.

While Boeing and Lockheed Martin have been the “poster children” of this policy initiative, everyone in the aerospace industry knows that one company stands out when it comes to egregious price increases foisted on the government:

TRANSDIGM  (NYSE:TDG)

TransDigm’s business model is to aerospace as Valeant was to the pharmaceutical industry. TransDigm acquires airplane parts companies (over 50 in total), fires employees, and egregiously raises prices.  This business model has made them a dominant supplier of airplane parts to the aerospace industry while burdening its balance sheet with sky-high debt load… sound familiar?

For the rest of the story you won’t read anywhere else, Click Here:

Lannett: Citron Exposes the Lawsuits that will Wipe Out the Equity

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Lannett will be the First Pharma Company to go Bankrupt amid Continuing Drug Pricing Scrutiny

If Even Modest Price Cuts Hit Either of Lannett’s Cash Cow Drugs, It Will Violate Its Debt Covenants 

$13-$15 Near Term Target

Equity Worthless Over Long-Term

In the past month we have seen a series of lawsuits against Lannett that Wall Street has completely overlooked.  These lawsuits, along with the Trump administration’s dedication to confront indiscriminate drug price raises, illuminates a clear path to 0 for the equity of Lannett.

For the rest of the story you won’t read anywhere else, click here …