Atlantic Coast operates as United Express in the Eastern and Midwestern United States, and as Delta Connection in the Eastern U.S. The company has a fleet of 109 aircraft and offers approximately 650 daily departures, serving 51 destinations in 24 states. Atlantic Coast employs over 3,200 aviation professionals.

February 5, 2001

Ladies and Gentlemen, ACAI continues its ascent for the following reasons: First, soaring energy prices, one of the biggest expenses for airlines, have pulled back and appear to be stabilizing. Secondly, the company announced a 2:1 split on January 25th. The split will be made payable on February 23rd. The stock did not immediately lift off following the split announcement, however, because Salomon Smith Barney downgraded the stock to “outperform” from “buy” right after the announcement. With any luck, the good analysts at SSB are kicking themselves now. Today, ACAI soared to a new high after breaking out of a flag pattern. Today's volume of just over 589,900 was more than three times the three-month average daily volume of 190,000. Despite the recent gains, look for momentum traders to drive the stock higher for the next couple of days. The MACD is positive and rising and the Money Flow is making new highs. Perhaps the key indicator that supports the possibility for a continued advance is the RSI, which has room to run before indicating an overbought condition. As long as the stock does not gap up more than three points on the open, aggressive traders can probably jump on board.

Picked on February 5th @ $46.38
Change since picked +0.00
Stop Loss @ $42.50

February 8, 2001

ACAI announced that it had reached a contract agreement with its 1,100 pilots. The deal, which extends for four-and-half years, will help the company avoid the labor strife that has severely hurt the reputations, and financial results, of many of its competitors. After breaking out of its flag pattern on Monday, the stock has been trading sideways. This a common occurrence among stocks that have enjoyed similar technical patterns. If support of $45.38 holds, one can probably buy the stock with the expectation that another breakout could occur. Trading interest in the stock may also increase as we get closer to the 2:1 split payable date of February 23rd. Three of our favorite technical indicators, the MACD, OBV and Money Flow are all indicating green lights and straight ahead for the stock. The RSI offers plenty of upside potential before an overbought level is indicated. Momentum traders may wish to wait for the stock to take out $48.00, the all time high, before going long.

Picked on February 5th @ $46.38
Change since picked -0.07
Stop Loss @ $42.50

February 6, 2001

ACAI is better known as United Express and Delta Connection. But whatever the moniker, ACAI is enjoying excellent growth through its partnerships with these larger carriers. Today, it was announced that the company saw a 27.7% increase in the total number of passengers carried in the past month over the same month last year. The good news sparked a rally that saw some early follow through to a new high of $48.00. Volume was just about average, and there was a light pullback into the close. The pullback was mostly like due to some apprehension over the slew of earnings releases after the close. With that said, a move above $48.00 on intra-day volume of over 200,000 could fuel the next momentum trader driven advance. As long as the overall market remains neutral to positive, we feel positions can be added to ACAI if it stays above the $43.00 support. The MACD and the Money Flow both point towards a continuation of the positive trend.

Picked on February 5th @ $46.38
Change since picked -0.50
Stop Loss @ $42.50