European & US short ideas

Vision Research

Since Vision pitched their short thesis on Vidrala, Verallia and O-I Glass at our Equity Shorting Conference in mid-Mar the stocks have underperformed the Stoxx600 by ~8%. In the last couple of months they have also initiated 3 new European shorts, 3 new US shorts, and has readied a new $7bn+ European short (trades ~$20m/day and has short interest of <1%) for initiation next week. Please join Vision for a meeting while members of their team are in Paris (Jun 5th-6th), Zurich (Jun 7th) and London (Jun 8th-12th).

In the last 24 months, Vision has closed several shorts including: Allegro, AutoStore, Boohoo, Burlington, Colruyt, De'Longhi, Electrolux, Gerresheimer, H&M, Hargreaves Lansdown, Inditex, New Relic, Nokian Tyres, Peloton, Similarweb, Thule, Trex, TSMC, UiPath and Whirlpool.

- 26 May, 2023

Vidrala (VID SM) Spain

Materials

Vision Research

Not as resilient as bulls believe - glass packaging is losing market share with paper cartons, plastic bottles, and aluminium cans increasingly preferred. These alternatives are cheaper, lighter and more durable. From an environmental perspective, glass has the highest greenhouse gas emissions, uses the most fossil fuel / water, and sees less benefit from recycling than aluminium. Additional headwinds flagged include declining alcohol consumption (>70% of VID sales), a deteriorating macro outlook, difficult ASP comparisons, and accounting concerns. The stock trades near all-time highs and short interest is <1%.

Robert Prather presented Vision Research's short thesis at IRF's latest Equity Shorting Conference. Click here for further details.

- 31 March, 2023