William Wrigley Jr., Co. manufactures and sells chewing gum under the Wrigley%s Spearmint, Doublemint, JuicyFruit, Big Red, Winterfresh, Freedent and Extra brand names.For the fiscal year ended 12/31/00, revenues rose 4% to $2.15B. Net income rose 8% to $479.3M. Revenues reflect higher worldwide shipments, a favorable mix and selected selling price increases in all regions. Net income reflectshigher gross margins.

February 4, 2001

William Wrigley Jr. (NYSE:WWY) isn't just blowing bubbles when it says that it owns 50% of the U.S. chewing gum market. The company is the world’s largest manufacturer and seller of chewing gum and specialty gums. Wrigley's principal products include Wrigley's Spearmint, Doublemint, Juicy Fruit, Big Red, and Extra. Aside from WWY’s steady earnings history, we feel that the chart may have just completed a rounded bottom formation off good support. What’s more, the company announced a 2:1 stock split on January 23rd, which could help to generate extra buying ahead of the payable date of February 28th. Is this sounding familiar yet? It certainly does to us, so lets point out a few of the important support and resistance levels for entry timing. First, for resistance we’ll look for a close above Friday’s intraday high of $88.45 to set the stage for a breakout. Should this occur, we will expect the next challenge to arise just higher at the 20-dma of $88.75. A much more difficult test will occur at the 50-dma of $89.82, which has been confirmed as an important level from the stocks recent history. Look for entry points when WWY can exceed resistance on good daily volume of 295,954 shares or better. Next, for support we’ll anticipate the convergence of the 5 and 10-dma’s at $87.61 and $87.48 to hold the initial support base. Secondary support should crop up at $86, bolstered by previous lows. Look for entries to develop from support when WWY bounces sharply off these levels on mid-day volume of 150,000 or more. We recommend placing stops at $85 to protect our backside. We ill plan our exit strategies ahead of the February 28th payable date, as per our normal policy.

Picked on February 4th @ $88.12
Change since picked 0.00
Stop Loss @ $85.00

February 8, 2001

Later this month, WWY is expected to announce the formation of a new division, Wrigley Healthcare. The new division will produce chewing gums that have medicinal purposes. Wall Street must have liked the news because WWY rallied above support at the 50-dma ($89.97) to test an intraday high of $91.32 before closing just lower at $90.96. Moreover, a bullish MACD tells us that further gains are still up coming. As it now stands, we’ll look for the first resistance level to take place at the recent high of $91.50. Stiffer opposition will likely follow at the $93 mark, reinforced by an intermediate top. If shares can advance through either of these levels on strong buying of 290,000 shares or better, we’ll look for entry points and a possible challenge of the all-time high of $96.88. On the other hand, should WWY challenge support we’ll look for an excellent base to come at $90, bolstered by the 50-dma and the 5-dma of $89.78. Look for secondary support to hold additional strength at the 20-dma of $88.44. Reversals off these support levels, when accompanied by good mid-day volume of 150,000 shares, could provide an opportunity to add to positions.

Picked on February 4th @ $88.12
Change since picked +2.84
Stop Loss @ $85.00

February 6, 2001

In an effort to pump up profits in the U.S. market, WWY has plans to introduce more products throughout this year. Furthermore, the company expects that a rollout of its pellet-shaped Eclipse brand should provide considerably larger margins than those of the customary stick gum, which could boost overall profits for the company. On the day, WWY shares got off to a great start and looked like they would resume Monday’s sharp advance, but late day selling pulled the plug on this shiny scenario. However, we’re happy to point out that the stock did manage to stay above the 50-dma of $89.85, which might now provide us with an important support base. Further down, a convergence of the 10 and 20-dma’s of $87.93 and $88.57 could offer strong secondary support near $88. Continue to keep stops at $85 should the stock violate support at these levels. On the upside, we’ll expect to see today’s intraday high of $91.50, possess initial opposition. Upper resistance will likely arise at $93, bolstered by a previous top and at the all time high of $96.88. Traders could consider entering WWY on a move through $91.50 on volume of 295,000 shares traded by mid-day.

Picked on February 4th @ $88.12
Change since picked +1.53
Stop Loss @ $85.00