UAL: Adding United Continental to Investing Ideas (Short Side)

10/18/18 10:06AM EDT

Below is a note from CEO Keith McCullough on why we're adding United Continental (UAL) to the short side of Investing Ideas:

With one of our favorite sectors to be short in Quad 4 (Industrials, XLI) imploding on their own earnings expectations again this morning, I'm looking to Industrials names that haven't yet collapsed.

One of those is United Airlines (UAL). The Old Wall loves it!

Jay Van Sciver, on the other hand, does not. His view is really a Quad 4 in Q4 view for UAL vs. management guidance:

"While we have Thanksgiving travel fares in our PRASM model for UAL, we limit the view to 3mo out.  That excludes end of year holiday travel, which could introduce some noise. Still, what we do see is enough to raise concerns about high expectations fading from the current robust demand environment."

Sell the bounce to lower-highs,

KM

UAL: Adding United Continental to Investing Ideas (Short Side) - ual

© 2019 Hedgeye Risk Management, LLC. The information contained herein is the property of Hedgeye, which reserves all rights thereto. Redistribution of any part of this information is prohibited without the express written consent of Hedgeye. Hedgeye is not responsible for any errors in or omissions to this information, or for any consequences that may result from the use of this information.