BDK manufactures, markets and services power tools and accessories, residential security hardware, household appliances and metal and plastic fasteners/fastening systemsfor commercial applications. For the FY ended 12/31/00, revenues increased 1% to $4.56B. Net income decreased 6% to $282M. Revenues reflect increased unit volumes. Net income was offset by the inclusion of a $39.1M restructuring and exit cost.

February 8, 2001

Black & Decker Corporation is a global marketer and manufacturer of quality products used in and around the home and for commercial applications. Tonight we welcome BDK to our new list of momentum plays after the stock achieved a new 52-week high. Intra day the stock traded as high as $46.65 on volume of 1.04 million shares, pretty good considering the stock normally trades on 810,000 shares. The stock has risen more than 50% since mid December of 2000 and recently conquered resistance at $45.00. In January BDK matched analyst's expectations for its earnings and now looks ready to sail to higher ground. In January the investment firm of CF First Boston changed its coverage of BDK to a "buy" from a "hold" and most recently Lehman Brothers ranked BDK as a "Strong Buy" with a price target of $52.00. The next technical challenge for the stock looks to be the half-century mark and then $52.00 a previous point of resistance dating back to January 2000. Support now exists at the 5-dma at $45.44, the 10-dma at $44.30 and the 20-dma at $43.30. Possible new play opportunities might include a move higher on volume over 500,000 by midday or a bounce off the 5-dma on similar volume. Be cautious of opening a new play if the volume drops as the stock rises. We will protect ourselves with a stop at $43.00.

Picked on February 8th at $46.37
Change since picked 0.00
Stop Loss at $43.00