SPX Corporation is a global provider of industrial products and services, technical products and systems, service solutions and vehicle components. For the nine months ended 9/30/00, net sales fell 1% to $1.97B. Net income before extra item rose 28% to $149M. Revenues reflect lower sales of technical products and systems. Net income reflects lower interest expenses and lower S/G/A as a percentage of revenues.

January 14, 2001

SPX is a major global provider of a myriad of technical products. The company produces data networking equipment, broadcast antennas, power transformers, industrial valves, high-pressure hydraulics as well as transmission and steering components for the automobile and truck industries, among others. SPX should be a beneficiary of the recent change in FOMC policy to a lower interest rate environment and investors are re-discovering this company. Investors are also keying off of the recent surge in the transportation stocks, namely the trucking companies as a reason to buy SPW. The stock begun the process of developing a rounded bottom formation after the company announced that it was comfortable with 2000 earnings estimates of $5.90 a share. SPX will release their official earnings on February 6th. SPX closed the week just above the 50-DMA of $110.59. This is usually a bullish event and it may signal renewed buying support for the stock. The MACD is positive and rising. OBV is also confirming a reversal in trend. The RSI has plenty of upside potential before the stock will be considered overbought. Long term resistance will likely come in at the 200-DMA, which sits at $125.09. The 20-DMA should provide decent support at $103.53.

Picked on January 14th @ $111.69
Change since picked +0.00
Stop Loss @ $103.00

January 18, 2001

This diversified producer of technical and industrial products continues to recapture investors. Last fall took on a literal meaning for the stock, as it dropped over 90 points from its summer highs. The past two weeks have seen SPW put in a major bottom. The end of the down trend occurred in conjunction with the FOMC's rate cut. SPW should benefit from a more stable interest rate climate and a stabilized economy. Analysts are expecting the company to post earnings of $1.65 a share on February 6th. Although the past couple of days has seen renewed interest in high technology stocks, look for SPW to rally when more defensive issues get gobbled up. SPW's 50-DMA is starting to level and it should provide excellent support at $110.00. A bounce off this support could be a good entry point. A move above this week's high of $118.75 could easily spark a rally to the next resistance point of $123.69. The MACD looks very good and it is telling us that the rally mode could continue for a while. Moreover, the RSI is still showing plenty of upside potential for the stock, so look out.

Picked on January 14th @ $111.69
Change since picked +3.31
Stop Loss @ $103.00

January 16, 2000

The chart of this diversified technical and industrial product manufacturer is showing a major reversal of a downtrend that began in mid-August. The decline took the stock from a high of $186.00 to a bottom of $90.50 at the end of the year. There is plenty of overhead resistance, but the stock is regaining favor due to a positive change in the interest rate environment. SPW briefly dipped below the 50-DMA of $110.38 today; however, the stock managed to rally late and close above this important support. Friday's high of $116.44 could provide initial resistance. If SPW can take out this resistance it should be able to move up to the most recent high of $123.69. The MACD is slowly moving higher in a maintainable ascent. The OBV is starting to mirror the MACD. We would like to see Money Flow improve to confirm a major comeback rally that becomes sustainable. It is hard to say when SPW will announce a split. However, NYSE stocks generally become split candidates once they start trading above $100.00.

Picked on January 14th @ $111.69
Change since picked +1.13
Stop Loss @ $103.00