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 22, 2001

Jacobs Engineering Group resumed its downward trend on strong volume during Wednesday’s session. The stock traded to an intra-day low of $53.14, violating support at the 10-dma. We were stopped out at $53.50, so we are removing JEC from our Current Plays list.

Picked on February 11th @ $52.20
Profit/Loss = +1.30 (+2%) (Stopped Wednesday @ $53.50)
Best Profit = +4.05 (+8%)

February 20, 2001

Construction engineering services provider Jacobs Engineering Group bounced back after two days of losses following news that the Air Force agreed to a $40 million contract extension with Sverdrup, a JEC subsidiary, to perform launch operations and support through fiscal year 2001. Shares of JEC traded to an intra-day high of $55.20 before pulling back to a close of $54.80 on light volume of 59,300 shares. Volume has been declining, so JEC may spend some time consolidating in the $54-$56 until the volume returns. For now, support is Tuesday’s intra-day low of $54.30 with additional support at $54.05, Friday’s intra-day low. Resistance remains steady at Friday’s intra-day high at $55.30 and then the all-time high at $56.25. Look for a bounce off of $54.30 or a move above $55.30 on midday volume greater than 60,000 shares before opening new positions. We have moved our stops up to $53.50 to protect gains.

Picked on February 11th @ $52.20
Change since picked +2.60
Stop Loss @ $53.50

February 18, 2001

Jacobs Engineering Group, a leading provider of construction engineering services, slid on Friday. Shares of JEC fell to an intra-day low of $54.05 just before the closing bell. Volume was on light side with 95,400 shares changing hands. The stock closed below its 5-dma for the first time since January 19th and this may be signaling further weakness ahead. JEC has enough shares for a split with 60 million shares authorized and 26.5 million shares issued. The stock is currently within historic split range so we could get a split announcement out of the next BoD meeting or with the April earnings release. Until then, JEC has light support at Tuesday’s intra-day low of $53.80 with stronger support at $52.93, the 10-dma. Resistance has come in at Friday’s intra-day high at $55.30 and then the all-time high at $56.25. Traders may consider entry points on a bounce off of $53.80 or a move above $55.30 on volume of at least 70,000 shares by noon. We have moved our stops up to $52.50 to ensure locking in a small profit.

Picked on February 11th @ $52.20
Change since picked +1.93
Stop Loss @ $52.50