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Trade #2 – Vail Resorts (MTN)
By Chris Johnson and Jon Lewis
For many, the end of summer means that the beginning of ski season is just around the corner. A look at the chart of mountain resort operator Vail
Resorts (MTN) shows that a positive seasonal effect begins kicking in as the slopes become covered with
snow.In addition to some technical strength recently exhibited by the stock (up more than 35% in the past six weeks), our sentiment indicators suggest
that the “crowd” has been bearish on MTN through the slower summer months. Current short interest is huge, and just a third of the covering analysts
rate the stock a “buy.”We expect that the upcoming ski season will shake these bears off the sidelines and turn them into buyers of MTN. Get in the stock now before the
buying pressure kicks in.
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