United Airlines Bullish Or Bearish?

May.30.14 | About: United Continental (UAL)

Summary

Airline industry outperformed over the past 12 months, but it is still fundamentally unsound.

Low oil prices and a strong economy must occur concurrently for airlines to do well.

United is the weakest company amongst the airlines.

In this video, Nick discusses the structural problems of the airline industry and why United (NYSE:UAL) is the weakest amongst the group. He explains how airlines rely on low oil prices and a strong economy simultaneously. However, due to emerging market demand for energy, this scenario is no longer realistic.

Disclosure: I have no positions in any stocks mentioned, but may initiate a short position in UAL over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.