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Gold/Mining/Energy : Big Dog's Boom Boom Room
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To: CommanderCricket who wrote (149389)4/14/2011 1:35:17 PM
From: Jacob Snyder  Read Replies (2) of 206097
 
OT "The Meanest Airline"

There are so many reasons to short UAL:

1. the two biggest costs for airlines are fuel and interest on their huge debts. If interest rates and oil go up...
2. UAL has higher costs than LUV, ALK.
3. debt/equity = 1.7
4. airlines are inherently low-margin money-losing businesses
5. in the last recession, UAL went from $51 to $3.
6. UAL bought Continental last year, a big acquisition at the market top.
7. Chart ugly:
stock falling below 200dma
50dma crossing below 200dma
a lower high in February, as the S&P500 set new bull market highs.
hasn't made a new high in over 5 months
it feels good to make money shorting a company that charges for 1/2-ounce bags of peanuts

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