Prime Stock Advisory Letter for January 28th, 1999

Today's Comments:  The overall market moved sharply lower yesterday.  It was a disappointment that the Dow Jones Industrial Average 'INDU' failed to break above what appears to be slight downward trendline.  This failure to move higher indicates that the Dow Jones Industrial Average 'INDU' is currently in a narrow trading range with a slight downward bias.  Stepping back for a minute and taking a look at a slightly longer view of the overall market,  the overall technical picture of the market continues to look very positive.  I do not have an indication of the direction of the movement of the market today as I believe it is still locked within this narrow trading band.  A break out from this trading range should be accompanied by a strong movement.
Recommendation

Company:  Atlas Air, Inc.       Symbol: 'CGO'    Closing Price: $49.00/share.
YH: $50.125      YL: $20.625   EPS: $1.37      P/E: 35.7   Forecasted EPS: $2.79
Dividend: N/A       Yield: N/A       Ex Dividend: N/A
Price Targets:  $54.57 and then $58.25     Downside Stop:  $47.875
Options Recommendation: March 45 Calls,  Symbol 'CGOCI' @ $6.625/contract.

Company Description: This company operates a cargo airline that provides service throughout the world.

Recent News:  1/26  Atlas Air record earnings for 4th qtr and full year.
1/26  Atlas Air 4th qtr net $0.80 vs. $0.41/share.
1/26  First Call earnings estimates for Atlas Air $0.77

Our Analysis:  The shares of 'CGO' set a new yearly closing high yesterday on heavier than normal trading volume.  In the process they completed a cup pattern with a measured move to $54.57/share.  If the shares of 'CGO' close above that level then they should continue to move higher and test their all time closing high of $58.25/share.  On Tuesday of this week,  Atlas Air reported its 4th quarter and year end results that were above expectations.  The company also announced a 3 for 2 stock split. 


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