Below is a note written by CEO Keith McCullough on why we're adding Unitedhealth Group (UNH) to the short side of Investing Ideas today:
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Inasmuch as you should have been looking to add to your favorite LONGS 7-8 trading days ago (when SPY was signaling #oversold), now you should be looking to lay out your favorite shorts. I know that's not how the consensus monkeys on Old Wall TV talk about it (they chase high and sell lower). That consensus is precisely why, over time, this risk management #process works. One of our Independent Research Team's best new ideas on the short side is Unitedhealth Group (UNH). It’s up on #decelerating volume today. Here's an excerpt from a deep dive Black Book presentation (Institutional Research) that Tom Tobin and Emily Evans produced recently: "Our thesis rests on a few simple and well-supported assumptions which produce a mid-single-digit grower at the operating margin line through 2022; materially lower than consensus expectations of low double digits." Sell the bounce, KM |