Professional Detailing, Inc. provides customized product detailing programs and other marketing and promotional services to the United States pharmaceutical industry. For the 9 mos. ended 9/30/00, revenues rose 86% to $231.4M. Net income totaled $16.2M, up from $7.5M. Revenues reflect renewal and expansion of existing product detailing programs. Earnings also benefitted from higher gross profit realized on incentive payments.

January 21, 2001

PDII is a promotional firm that creates marketing and sales strategies for the domestic pharmaceutical industry. Some of their more successful campaigns include, Flonase, Prilosec and Wellbutrin. This is evidently a profitable business. PDII is expected to post a profit of $1.91/share for all of 2000. PDII is expected to grow earnings by another 48% this year. December was a tough month for the share price of PDII. The stock was almost cut in half without the benefit of a split. The stock fell from its all time high of $142.00 and eventually found some very good support at $63.00. PDII is currently consolidating in the $80's but could be on the verge of a breakout to at least the 50-DMA of $105.00. One possible trigger for a rally could be a split announcement. PDII does not have any split history but we feel that the share price is high enough to justify a split announcement. Also in our fovor is the fact that the MACD is on the verge of triggering a buy signal. This will likely occur if PDII can close above $91.75. The RSI is telling us that there is plenty of rally room before the stock becomes overbought. Please note that PDII has a very small float (13 million shares), which can result in some big price swings.

Picked on January 21st @ $89.94
Change since picked +0.00
Stop Loss @ $82.50

February 1, 2001

Professional Detailing picked up a few more fans yesterday when W.R. Hambrecht initiated coverage with a Buy rating. The research firm believes that the contract sales and marketing industry should double its revenues by 2004. Many major pharmaceutical firms rely on PDII to develop strategies to influence doctor prescription trends. The stakes are very high in this business and PDII should see more contracts thrown its way after very successful campaigns for Flonase, Wellbutrin, Bayer Aspirin and Pepcid AC. PDII is due to report its year end earnings any day now and with the stock trading over $100.00, a split announcement could come. In today's trading, PDII bounced off the important psychological support price of $100.00. We had hoped that the 50-DMA would provide better support at $102.00, but at least the stock managed to climb back above this level. Today's volume was extremely light with only 47,600 shares traded. This is a good sign that the selling was not terribly serious. The MACD is telling us that the up trend is intact. We see some resistance for the stock at $110.00 followed by $117.50.

Picked on January 21st @ $89.94
Change since picked +13.19
Stop Loss @ $98.00

January 30, 2001

PDII began the week in explosive fashion, as the stock gathered momentum after crossing the $100.00 threshold as well as moving above the resistance offered by the 50-DMA at $103.06. The mild profit taking today was accompanied with light volume of only 65,000 shares. It is entirely possible that traders are starting to push up this provider of marketing services to the pharmaceutical industry in the hopes that a split announcement may be coming soon. PDII is expected to post earnings sometime during the first week of February (we will keep checking to try and obtain an exact date). The 50-DMA was successfully tested today and $103.00 should be a pivot point for traders. The next level of support should be just under $100.00. If yesterday's high of $109.63 can be surpassed, it is entirely possible that the stock could zip to the next level of resistance at $114.00. Please note that we have raised our stop to $98.00.

Picked on January 21st @ $89.94
Change since picked +14.37
Stop Loss @ $98.00

January 28, 2001

PDII has been an invaluable partner for many pharmaceutical companies due to its creative management teams and highly trained sales staff. "Detailing" refers to the specific practice of developing relationships with individual doctors in an attempt to convince them to prescribe the specific drugs that PDII is currently marketing. PDII’s share price has benefited from the fact that the company is included within the drug industry, which typically attracts value investors as well as having many of the characteristics that attracts momentum investors. PDII closed last week on a very strong note. In fact, Friday's closing print was the highest price the stock saw all week. This opens up the possibility that the momentum will carry over into this week. A test of the resistance provided by the 50-DMA of $103.38 could come quickly. The 20-DMA confirms trend line support at $93.06. The MACD is positive and moving higher. We would like to see volume pick up to get the OBV and Money Flow trending higher. A positive close on Monday with volume over 225,000 would be a good sign that the rally is getting stronger. PDII is unofficially expected to report earnings sometime during the first week of February. We will update with the exact time when the information becomes available.

Picked on January 21st @ $89.94
Change since picked +8.92
Stop Loss @ $92.00