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 25, 2001

ACAI ran into some very choppy air during Friday's action. Once the $44.00 support was broken, the rush to the exits accelerated. ACAI will begin trading on a split-adjusted basis Monday. We were planning to exit this position on Friday's close. Unfortunately, the early selling pressure caused the execution of our stop at $42.50. Our stop was just slightly below the 50-DMA and it appears that ACAI successfully tested this important support. Longer-term investors may want to continue watching this stock and perhaps enter a position following the split if ACAI can hold the new support of $21.00.

Picked on February 5th @ $46.38
Profit/Loss -3.88 (8%) (Stopped Friday @ $42.50)
Best Profit +1.00 (2%)