Below is a note from Hedgeye CEO Keith McCullough on why we're adding Spirit Airlines (SAVE) to the long side of Investing Ideas today:
"Buying dips, selling rips. That is the risk management #process @Hedgeye, indeed.
Looking for new names that are:
A) At the low-end of the @Hedgeye Risk Range and have
B) Recently been added to our analyst #like lists?
Enter a recipient of our Reflation Rollover call (lower fuel prices passed on to consumers benefiting from inflation #slowing): Spirit Airlines (SAVE). Per our Industrials guru, Jay Van Sciver,
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"Given the recent decline in shares of SAVE, we see an entry opportunity into a major structural change in the airline industry: the rise of the ULCCs. We have waited quite a while for a chance to invest in Spirit, as we think some investors incorrectly specify the market potential for ULCCs. We expect SAVE to benefit as they gain scale and leverage their low cost operating model." |
Buy on red,
KM"
