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Contiental Could Surge 100% In 6 Months, Says Analyst

After a 30% drop in 30 days, should you be a buyer of Continental Airlines?

JPMorgan analyst Jamie Baker, the #1 airlines analyst as ranked by Institutional Investor says yes.

He rates the stock "overweight" and feels that the stocks drop has been “too fast and too furious.”

Although Baker is bullish on this stock fundamentally, his call is more technical.

"(The) ‘down 30 in 30’ rule has worked 25 times in a row for Continental,” he tells the desk. In other words a 30% slide in 30 trading days or less means the stock is a buy – pure and simple.

Here’s why.

“Since 1993 there have been 25 instances in which Continental fell this fast and this furiously. If you bought the stock each time, 25 times you would have made a 100% return over the next 180 trading days,” Baker says.

”Now, there’s no guarantee that lighting will strike a 26th time but we’re cautiously optimistic that it might,” he concludes.


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