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 30, 2001

Selling in SPW shares took off yesterday once the stock dropped below the 50-DMA of $109.00. We are a little surprised that SPW rollover right before an expected rate cut because this industrial products provider could be a major beneficiary of lower interest rates.

Picked on January 14th @ $111.69
Profit/Loss -2.69 (2%) (Stopped Monday @ $109.00)
Best Profit +7.06 (6%)

January 29, 2001

Hit stop Monday at $109.00, write up to follow.

January 28, 2001

The share price of SPX began to rollover a bit last week. It looks to be slowing pulling back towards its 50-DMA of $109.00. SPX is a major producer of multiple technical and industrial products. Resurgence in the economy following aggressive rate cut moves by the Fed should help SPX to continue its previous strong growth. On Friday, SPX slipped a bit after announcing a strategic acquisition. The Company will purchase TCI International (NASDAQ:TCII) for about $39 million in cash or just over TCI's annual sales figure for 2000. TCII is a maker of transmission and receiving equipment for broadcasters. On February 6th, SPX should report profits of $1.65/share, which will be a nice increase of 18% over profits reported in the same quarter last year. It is certainly possible that SPX's stock is trading at a high enough price to induce a split announcement. Although SPX slipped the last two days, the volume of less than 100,000 shares traded tells us that the selling did not have conviction. Hopefully, a rate cut early this week will get the stock going in the right direction. Our stop at $109.00 is right at major support. There will be mild resistance at about $114.50 followed by stiffer resistance at $118.75. The MACD is still positive which tells us that the rally could resume this week.

Picked on January 14th @ $111.69
Change since picked +1.25
Stop Loss @ $109.00