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 22, 2001

Early Thursday, the market again took to selling and our stop loss on BDK was triggered at $43.00. We will keep an eye on BDK for better opportunities in the future.

Picked on February 8th @ $48.70
Profit/Loss -5.70 (-13%) (Stopped Thursday at $43.00)
Best Profit +0.58 (+ 1%)

February 20, 2001

Black & Decker Corporation was short circuited from holding higher ground on Tuesday thanks mostly to a negative market. Early in the day, power tool manufacturer BDK inched higher only to ultimately mirror the broad market and head south. The long weekend did not offer investors any solace, as traders continued the selling that wrought havoc last week. The only bright note from today's distribution of BDK was the fact that it occurred on low volume. Normally the stock trades on an average volume of 775,000 shares based on a three-month average. On Tuesday, only 440,000 shares changed hands. If you are considering opening a new play on BDK, look for the stock to immediately move higher from here or bounce off the 20-dma at $44.30. Another possible entry point would be an advance through resistance at $46.00 or $47.00 on heavy volume of over 500,000 shares traded by midday. This weekend we noted that this stock has been "rolling" between $45-$47, so an entry point may soon avail itself for those who like this kind of play. As noted Sunday, one might consider using a stochastic indicator set at 14,7,9 for tracking this rolling stock. Watch for the fast line to turn up through the 20 percent line as a possible entry signal. We will keep our stop loss at $43.00 on this play for now.

Picked on February 8th at $46.37
Change since picked -1.38
Stop Loss at $43.00

February 18, 2001

Power tool manufacturer Black & Decker finished the week fractionally higher. For a company that prides itself on making rough and tough power equipment, the stock sure turned in some wimpy volume this week. On Friday only 274,000 shares changed hands, that's about one third of the 3-month average of 795,000 shares. In order for any substantial gains to be made next week the volume will surely need to pick up. The stock has been "rolling" between $45 -$47 this week, so those of you who are followers of this type of range bound trading may wish to look for an entry point since the stock is now back at $45.00. This level also happens to be a support area, as is the 20-dma at $44.15. On its way back up, BDK is likely to be challenged at the 10-dma at $45.41, then at $46.00 & $47.00. BDK is no stranger to breakout volume of over 1 million shares, so if you are looking at initiating a new play in BDK, you might look for at least 500,000 shares traded by midday. Additionally, one might consider using a stochastic indicator set at 14,7,9 for tracking this rolling stock. Watch for the fast line to turn up through the 20% line as a possible entry signal. We will keep our stop loss at $43.00 on this play for now.

Picked on February 8th at $46.37
Change since picked -1.32
Stop Loss at $43.00