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 15, 2001

ACAI hit a little turbulence today, as technology stocks soared to attract the bulk of trader's interest. ACAI is a regional airline that operates the United Express and Delta Connection brands. The company announced a 2:1 split on January 25th. Now that the payable date is only one week away, we fully expect the split run to begin in earnest. ACAI shares are currently consolidating in a range between $45.13 and the recent all-time high of $48.00. This trading action has formed a nice flag pattern. A breakout above $48.00 on volume over 200,000 shares could result in a gain of several points. Should ACAI close below $45.00, though, we would be cautious about initiating new positions. On a more positive note, Money Flow and OBV are both still strong, which gives us the confidence that the more likely scenario has ACAI taking out the $48.00 resistance, especially with a split pay out pending.

Picked on February 5th @ $46.38
Change since picked -1.00
Stop Loss @ $42.50

February 13, 2001

ACAI held steady despite the fact that Delta Airlines (NYSE:DAL) pilots voted to approve a strike if current negotiations reach an impasse. The strike deadline is February 28th. This news is significant for ACAI because the company operates Delta Connection, which offers feeder flights for Delta. We will be out of this play before the strike deadline. ACAI will split its shares 2:1 on February 23rd. Hopefully, traders will ignore the labor strife and concentrate on a split run. As always, we will exit this position no later than just before the split occurs. Aggressive traders may want to jump on board late tomorrow and possibly take a quick profit on a gap up open on Thursday. The RSI continues to offer upside potential before the stock would be considered overbought in the short term. Traders with a longer term focus may wish to add to positions if ACAI can take out today's high of $46.63 tomorrow, on volume over 100,000 by 1:00 EST.

Picked on February 5th @ $46.38
Change since picked -0.32
Stop Loss @ $42.50

February 11, 2001

ACAI is the fastest growing regional airline in the country and markets itself under the names of United Express and Delta Connection. Last week, a slew of good news was released pertaining to the company. Revenue Passenger Miles (RPMs) increased a whopping 40.6% in January over the same month last year. ACAI also reached an agreement with its 1,100 pilots on a new contract. Labor strife has hurt several airlines in the past year and this new contract alleviates any concerns that ACAI will suffer from a pilot strike. On January 25th, ACAI announced a 2:1 split in conjunction with an earnings report that saw the company beat the consensus estimates by a penny, with profits of $0.47 a share. The split will be made payable on February 23rd and a split run appears possible considering the strong technicals that the stock is exhibiting. The MACD is steadily climbing. The OBV and Money Flow are also noticeably strong and confirm the current uptrend. Last week saw ACAI establish some good support at $45.38. Those wishing to get on board for a potential rally may want to pick up shares as long as the stock stays above this support. Momentum traders may want to pounce on this play if the stock can establish a new high above $48.00 on midday volume of at least 150,000 shares. Our stop is set at $42.50 to prevent against a crash landing of any sort.

Picked on February 5th @ $46.38
Change since picked -0.32
Stop Loss @ $42.50