Short Names on Our "Workbench": Scotts Miracle-Gro, Corsair Gaming, CF Indus, Gap Inc, Hub Group.

Fundamental Short Selling Research

Eric Fernandez, CFA

TwoRiversAnalytics

Equity Bottom-Up

<ul>
<li>The company is overearning due to an unusual confluence of events that increased demand for and limited supply of transportation, especially intermodal, services.  </li>
<li>HUB’s sales and margins surged on a 40%+ intermodal pricing increase.  EBITDA margins increased 400bps</li>
<li>Import volumes and port congestion are falling.  Pricing is easing.  Transportation could end up in a glut quickly.   The weakening macro picture could take additional pressure off transportation demand.    </li>
</ul>


The company is overearning due to an unusual confluence of events that increased demand for and limited supply of transportation, especially intermodal, services.  
HUB’s sales and margins surged on a 40%+ intermodal pricing increase.  EBITDA margins increased 400bps
Import volumes and port congestion are falling.  Pricing is easing.  Transportation could end up in a glut quickly.   The weakening macro picture could take additional pressure off transportation demand.    


Hub Group Inc Cl A

Hub Group, Inc. (HUBG): Sell Short