Jacobs Engineering provides a broad range of project services; process, scientific and systems consulting services; operations and maintenance services; and construction services. For the 3 months ended 12/31/00, revenues rose 15% to $929.2M. Net income totaled $20.1M, vs. a loss of $5.8M. Revenues reflect sales increases in virtually all markets. Earnings also benefitted from the absence of the provision for litigation settlement in 1999.

February 11, 2001

Jacobs Engineering Group is a leading provider of engineering services in the United States. The company offers architectural, scientific, and maintenance services to the construction industry. Shares of JEC have had a strong year, rising from its 52-week low of $26.18 on March 15th to an all-time high of $52.25 on Friday. The stock also put in what we feel is a breakaway gap on 2/2/01. We believe that the stock is in a firm upward trend and it is now in historic split range. The company has enough shares for a split with 60 million shares authorized and 26.5 million shares issued so we could get a split announcement out of the next BoD meeting or with next week’s SEC meeting. From a technical perspective, support is the 5-dma at $51.06 with stronger support at $49.63, the 10-dma. All forms of resistance were taken out on Friday so new resistance may show up at $53 or $55. Traders may consider entry points on a bounce off of $51.06 or a breakout above $53 on volume greater than 70,000 shares by noon. We plan to set stops at $49.50 as downside protection.

Picked on February 11th @ $52.20
Change since picked +0.00
Stop Loss @ $49.50

February 15, 2001

Construction engineering services provider Jacobs Engineering Group announced that it planned to acquire Gibb, a member of the LawGibb Group, after the bell on Tuesday. Gibb is an international engineering consultancy with revenues of approximately $100 million. On Wednesday, shares of JEC hit an all-time high of $56.25 on volume of 273,000 shares. The stock dipped slightly on Thursday after four days of gains. From a technical perspective, support is the 5-dma at $54.41 with additional support at $53.80, Tuesday’s intra-day low. Resistance has moved up to the all-time high of $56.25 and then $57.50. A bounce off of $54.41 or a breakout above $56.25 on midday volume of at least 70,000 shares may provide a possible entry points. We are keeping our stops at $49.50 as downside protection.

Picked on February 11th @ $52.20
Change since picked +3.15
Stop Loss @ $49.50

February 13, 2001

Jacobs Engineering Group, a provider of construction engineering services, has been moving higher on strong volume. On Tuesday, shares of JEC hit an all-time high of $55.19 on heavy volume of 295,000 shares following news of three separate contract wins. The stock has traded to record highs in three straight sessions so we may see some profit taking in the near future. For now, support has moved up to Monday’s intra-day high of $54 with stronger support at the 5-dma, currently at $52.58. Resistance is now the all-time of $55.19 and then possibly $57. Look for a bounce off of $54 or a breakout above $55.19 on midday volume of at least 70,000 shares before opening new positions. Our stops remain at $49.50 to limit potential losses.

Picked on February 11th @ $52.20
Change since picked +2.62
Stop Loss @ $49.50