Becton, Dickinson and Company manufactures and sellsa broad line of supplies, devices and systems used by healthcare professionals, medical research institutions and the general public. For the 3 months ended 12/31/00, revenues fell 2% to $843.3M. Net income decreased 19% to $60.6M. Results reflect unfavorable foreign exchange translation, remaining inventory reductions at the trade level, and the discontinuation of certain distributor incentive programs.

February 11, 2001

BDX is engaged in the manufacture and sales of a diverse array of medical products and systems. It has long been known to offer products of a superior quality. BDX outperformed the market last week after Lehman Brothers reiterated its “Strong Buy” rating on the company. Currently, Lehman Brother's year-end target price for BDX is $42.00 or 25.5 times expected 2001 earnings (fairly modest). The research firm also noted that an increase in sales due to new Federal safety requirements will likely come sooner than later because the compliance date for the new rules has been moved up to April 18th from August 1st. On Friday, BDX closed only a penny below a newly established 52-week high. A move above $37.04 may prove to be an excellent entry point for momentum traders. A run to resistance at $40.00, established in mid-1999, could occur quickly if the stock trades above $37.04. A bounce off support offered by the 10-DMA just below $36.00 may also prove to be a good entry point. The MACD is rising, which suggests the continuation of the positive trend. Money Flow is very strong and is establishing new highs, which also casts a positive light on the potential for more gains.

Picked on February 11th @ $37.03
Change since picked +0.00
Stop Loss @ $34.50

February 15, 2001

This week has been relatively volatile for major medical equipment and supply company BDX. Technology stocks have enjoyed a significant rally over the past two days, which has caused a pause in the accumulation of stocks in other sectors. Patience is the key with BDX because this market has been characterized by sector rotation. When technology stocks cool off, we fully expect traders to start looking at other sectors for their profits. BDX would be an excellent choice due to its strong technical picture.. Although the stock has seen some strong profit taking the past two days, the uptrend remains intact. If there is more profit taking tomorrow, a bounce off the 20-DMA of $35.38 may provide an excellent entry point. To that end, the MACD is still positive and trending higher, leading us to believe that the past two days have just been a pullback within an uptrend. What’s more, the fact that the RSI has pulled back from an overbought signal gives the stock the necessary room to challenge the resistance of $39.25.

Picked on February 11th @ $37.03
Change since picked -0.53
Stop Loss @ $34.50

February 13, 2001

There was very little interest in profit taking in BDX while the broader markets dropped into the close. This fact bodes well for a continued rally in the company’s shares as we approach the normally bullish options expiration on Friday. This manufacturer and supplier of a myriad number of medical products and systems has been attracting new investors. The stock made a new high on good volume of just under 2 million shares. The new 52-week high is $39.25. A possible good entry point for tomorrow's trading could be when the stock trades to $39.38 on midday volume over 1 million shares. The stock could run into some longer-term resistance at $40.00. A close above this price would instill more confidence among traders that the stock is headed higher. The technical indicators support a continued rally. The MACD is in a sustainable ascent. Money Flow is particularly strong. The RSI is approaching an overbought signal but there is still room for more profits.

Picked on February 11th @ $37.03
Change since picked +1.97
Stop Loss @ $34.50