Penny Stock Watch - LCC

Sometimes the best time to invest a company is when the company is in trouble. This may be the case for US Airways(LCC), a major airline company which has been in deep trouble due to skyrocketting fuel cost. Now that oil price is dropping this is probably the time to look at the stock.

Technical
The technical chart shows the stock is due for recovery as MACD is back above 0 and K line is on top of D line. In addition the stock is also back above 50 day moving average showing positive momentum.

Insider
One insider was very optimistic about the future of the company and bought 197,000 shares at $2.77 per share last month, a positive sign. The insitutions however were still bearish and sold 4.7 million shares last quarter.

Financial
The financial statement shows this is a company in danger as the latest quarterly report came with net loss of $567 million, doubling the loss of previous quarter.

Conclusion
Financial companies are bad. But the company that can generate net income should be a great one to buy while it is cheap.

Penny Stock Score (1~5) 5 is highest
1. Industry (airline): 2
2. Technical: 4
3. Insider: 3.5
4. Financial: 2
Recommendation: Accumulate