Hedgeye CEO Keith McCullough is adding Spirit Airlines (SAVE) to the long side of Investing Ideas. Below is a brief note.
As Industrials Pro subscribers know, Industrials analyst Jay Van Sciver is not only on a stock picking (and process) roll right now, but flying the friendly #Quad2 HIGH SHORT INTEREST skies in Airline Spirit Airlines (SAVE)...
Here's a good excerpt from his Independent Research (which would be great content for Reddit peeps looking for some Short Squeeze alpha!):
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As the vaccine rolls out in coming quarters, airline capacity should fill as travel – particularly non-business travel – recovers. Family reunions, delayed vacations, and other pandemic-related travel cancellations should provide ample pent-up demand to drive a revenue rebound. Capacity in the industry has contracted. SAVE is a low-cost producer, targets a market segment that should recover quickly, and provides mostly domestic service – a recipe for post-pandemic outperformance. |
Buy the damn dips,
KM