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

February 15, 2001

Toolmaker Black & Decker lacked volume on Thursday and was unable to move higher. Normally, BDK trades on about 800,000 shares, but turned in a mere 600,000 on Thursday. The good new was that the stock stopped at the 10-dma at $45.44, where it appears to have found support for now. Going forward, we'd like to see the volume pick up and the trend turn bullish. The stock is forming a wedge pattern and may break one way or the other soon. At present, resistance is located at $46 and then at $47.00. As mentioned, the first level of support is at $45.44 and then at the 20-dma at $44.00. If you are eyeing BDK for a new play, you might want to consider a move through resistance at $47.00 on good volume of 450,000 shares by midday. We will keep our protective stop loss at $43.00 for now.

Picked on February 8th at $46.37
Change since picked -0.93
Stop Loss at $43.00

February 13, 2001

Last Friday, toolmaker Black & Decker powered its way to a new 52-week high just before profit takers came in and spoiled the grand finale record close for the day. The stock closed lower but now has regained all it lost on Friday and looks poised to achieve another new high. We will be closely watching the volume levels in the coming days. Normally, the stock trades about 788,000 shares based on a three-month average. However, it is not uncommon for BDK to exhibit volume of better than 1 million shares on breakouts. Therefore, watch for the stock to rise on volume of 750,000 shares by midday when considering new play opportunities. The stock may bounce off a support level, like the 5-dma at $45.67 or the 10-dma at $43.79, before moving higher. On the other hand, the stock may immediately challenge resistance at $46.89, if that is the case the volume will be particularly important. Be cautious if the attempt to conquer resistance comes on low volume. We will maintain our stop loss at $43.00 on this play until further notice.

Picked on February 8th at $46.37
Change since picked -0.09
Stop Loss at $43.00

February 11, 2001

Black & Decker powered its way higher this week and achieved a new 52-week high on Friday. The advance was made on volume of 1.1 million shares; nice considering the stock's 3-month average is 810,000. Even nicer was the bullishness of the move on a day when both broad market averages tumbled into triple digit loss territory. Unfortunately, the stock lost some of its footing and ended the day lower. The stock was added to our list of momentum plays this week and looks to have more upside potential in store. Recently the investment firms CS First Boston and Lehman Brother upgraded the stock to a "buy" and "strong buy" respectively. Additionally Lehman Brother put a price target on the stock of $52.00. This number also coincides with a point of technical resistance on the chart that dates back to January 2000. The MACD remains positive, although barely. The OBV is steadily climbing and the RSI is indicating that BDX has room to run. If you are considering starting a play in BDK next week, look for volume to exceed 500K by midday and a bounce off support as a possible entry point. Support is now located at the 10-dma at $44.65 and the 20-dma at $43.50. Resistance is marked at the 5-dma at $45.42 and then at the high at $46.89. We will place our stop loss order just under support at $43.00.

Picked on February 8th at $46.37
Change since picked -1.41
Stop Loss at $43.00