EVENTS:   The Roaring 2020s or a Rerun of the 1970s? - Edward Yardeni/Yardeni Research - 24 Mar 26   Best Equity Short Ideas Conference Call 13 - Thomas Chanos/Badger Consultants & Dr. Aaron Fletcher/Bios Research & Jonathan Telgener/Channel Dynamics & Ed Steele/Iron Blue Financials & John Zolidis/Quo Vadis Capital & Mark Hiley/The Analyst - 26 Mar 26     ROADSHOWS: Chinese Equity Ideas & Channel Checks Across 50 sub-sectors - Don Ma /Horizon Insights   •   London   23 - 27 Mar 26       Long Short European Equity Research - Harry Grist /The Analyst   •   New York   26 Mar 26       Fundamental US Healthcare Short Ideas - Dr Elliot Favus /Favus Institutional Research   •   London   27 - 27 Mar 26      
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Company Research

American Airlines (AAL)

Industrials

Asterisk Advisors

AAL reported a disappointing Q1, with modest improvements in unit revenue and load factor offset by poor cost control (especially relative to Delta and United). Despite benefitting from lower fuel prices, AAL failed to retain related savings. Cash conversion deteriorated and over the last 12 months, adjusted OCF is ~33% below 2019 levels (the weakest among the Big Three). Leverage also remains substantially higher than peers. Reno Bianchi forecasts Q2 EBITDA of ~$1.6bn, below consensus estimates. Given increasing macro risk, he believes AAL's credit profile is looking increasingly fragile. Reno continues to recommend avoiding the group's equity and unsecured debt, while the current spread premium among AAL’s long-dated secured obligations is too tight. Investors should focus exclusively among some of the airline’s short-dated, well secured structures.

Edition: 210

- 02 May, 2025


United Airlines Holdings (UAL)

Industrials

Smart Insider

Brett Hart (President) sells $3.4m of stock at $45.14 reducing his holding by a massive 69% - this is clearly a concerning trade from an executive that was only promoted to President in 2020. Not only has he materially reduced his stake in the company, but it comes after long-term under-performance. It is his first non-option related sale since 2014. He currently only has 7,000 exercisable options. Stock Rank -1 (lowest rating).

Edition: 119

- 17 September, 2021