On July 30th, we recommended the short sale of UAL Inc.
at a price pf $5.61. Currently the price is $2.88, which represents
a gain of 52%. We believe that the short position should be
closed since most of the decline is associated with the possibility
of a Chapter 11 filing.
While a Chapter 11 filing is a distinct possibility
it is also possible that UAL Inc. will be successful
in extracting union concessions and thus be able to secure
a U.S. Government loan guarantee aggregating $1.8 Billion.
This becomes a real possibility since the U.S. Air bankruptcy
Given the gains achieved to date, we believe it prudent
to capitalize these gains.
Stock Traders Press Management