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 15, 2001

Wrigley is undertaking two programs in the U.S. that should help to boost up the company’s revenue streams. First, it is re-launching its Big Red product line with a large media campaign. This should help revive the brand, which has seen lackluster sales over recent years. Second, the company will start introducing its new antacid gum, Surpass, which should be available by next month. We are looking for these new developments to stir up additional buying of the stock. Currently, shares have given back a couple of points from our previous write-up, but the fall has come on declining volume, which could be a sign of fewer sellers. A positive MACD still shows underlying strength and furthers our hopes for an upcoming rally. With that said, we’ll look for resistance to come at the previous high of $91.61 and further up at $95. Runs through these levels will trigger our entries, when volume can meet or exceed the three-month daily average of 280,000 shares. Potential entries can also arise if the stock retraces to support at $88.78 or to previous lows at $86. A reversal off either of these levels could create additional buying interest. We’ll continue to keep stops at $85 to guard against a lower bottom.

Picked on February 4th @ $88.11
Change since picked +1.70
Stop Loss @ $85.00

February 13, 2001

With a stronger product mix from newer items, such as Extra Polar Ice and Eclipse, WWY continues to make good strides in its revenue growth. Moreover, these products have helped to drive operating margins by 7% over last year’s 24%. On the day, WWY shares broke sharply lower at the open and fell to an intraday low of $89.29 before staging a strong rally back into positive territory. The catalyst for the recovery may have come from the Fed, whose announcement of further slowing in the economy sent money flowing back into defensive plays. So, should the stock experience further strength, we’ll look for a key resistance point to arise at the $93 mark. Secondary opposition should be much tougher at $95 and $100, so be cautious with buying at these levels. On the other hand, we’ll expect retracements to find intraday support at the 5-dma of $91. Just below, the stock should find a much tougher base at $90, bolstered by the 50-dma of $90.04. We’ll look for entries off either of these levels, when shares can bounce sharply from them on good mid-day volume of 150,000 or better. Retain your stops at $85 to protect against further declines.

Picked on February 4th @ $88.12
Change since picked +3.26
Stop Loss @ $85.00

February 11, 2001

With an expanding distribution of new products into several international markets, WWY is anticipating international sales to account for nearly half of the company’s total revenues this year. International sales should also help WWY to improve its bottom line by 8% throughout 2001. Aside from strong fundamentals, we feel the stock remains in a good position to make more short-term gains. On Friday, WWY shares ascended early to an intraday high of $91.61, before late day selling sent shares to a close of $91. Light volume of 133,700 shares accompanied the stock lower. A glance at the intraday chart shows that much of this volume came near the open, as the stock was climbing higher. This is a good short-term indicator that there are still plenty of buyers to be found at current levels. So, should more buying resume on Monday, we’ll look for key resistance levels to challenge WWY at $93 and $95, each bolstered by previous tops. Should daily volume come in strong, with at least 290,000 shares traded, we’ll look for potential buy points as the stock breaks through either of these levels. Note that the all time high resides at $96.88, which could also turn out to be a significant hurdle. For support, an intraday foothold may already exit at current levels ($91), so an entry point could be signaled as early as Monday morning. Remember to keep firm stops at $85 to protect on the downside.

Picked on February 4th @ $88.11
Change since picked +2.89
Stop Loss @ $85.00