Fundamental Company
Below is a complete list of all the research that we have produced, in chronological order.
US Airways (LCC, $11.32) Update
05/14/12 -
US Airways (LCC, $11.32) Update
From a technical basis, this looks to be a better place to take profits on US Airways than be a buyer. The stock has had a great run since our earlier notes, but now falls into the “Too Far, Too Fast” bucket. The stock is extended and is 74% above its 200 day moving average and 66% above its 150 day moving average. The move has been helped in part by the recent drop in oil prices, but oil is now starting to look oversold. Technically, we think it makes more sense to play a name like Hornbeck Offshore Services (HOS) which is oversold on the move in oil and is now within spitting distance of its rising 150 day moving average. Please refer to the charts inside.
From a fundamental perspective it appears that all of the things we have hoped for have come true quickly. Oil has come back down, the revenue outlook has remained very strong, and a deal with American Airlines seems far more likely.
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