RH Short due to Competition Value and Over Extensive Run

Alden Investments believes that this run won't continue for many reasons. The main thing that bothers us with this is the pure overvaluation baked in. Given the value of this company and a 42% short, we don't see this run still going. The reason we'll argue otherwise is simply speculative traders and algorithm trading bots. RH has decreasing margins and we don't feel as if they'll get any better throughout the rest of the year due to the seasonal changes as well as competition squeezing business.