Polaris Industries Inc. engineers, markets, and manufactures snowmobiles, personal watercraft, all-terrain vehicles, motorcycles and related parts, garments and accessories. For the FY ended 12/31/00, net sales rose 7% to $1.43B. Net income increased 8% to $82.8M. Revenues reflect growth in all-terrain vehicles and expansion of company%s parts, gamets & accessories business. Earnings also reflect increased equity in income of affiliates.

February 13, 2001

Polaris engineers, markets, and manufactures snowmobiles, personal watercraft, all-terrain vehicles, motorcycles and related parts, garments and accessories. On Tuesday, the stock climbed to $49.22, an intra-day high, which beat the previous high recorded earlier this month by two cents. The stock recently beat earnings by five cents, marking the fourth quarter in a row that the company either beat or matched earnings forecasts. Furthermore, the stock has nearly doubled in price over the past year. Currently, PII has 23.7 million shares authorized and 80 million authorized, enough for a 2:1 or a 3:1 split. There are no scheduled meetings for the company, but with the number of authorized shares, a split announcement could be made at any time. Looking at the chart, we see that support is located at the 5-dma at $48.08, the 10-dma at $47.57 and then the 20-dma at $46.26. Resistance is up at $49.22 and the half-century mark. When considering a new play on PII, look for strong volume, 60,000 shares by midday and a move through resistance or a bounce off support as a possible entry point. We will place a stop loss below the last support level at $44.88.

Picked on February 13th at $48.70
Change since picked 0.00
Stop Loss at $44.88

February 22, 2001

On Thursday, Polaris swam against the current and posted a fractional gain. The broad markets gave investors a mostly red hue. Nevertheless, PII made a slow ascent that lasted throughout the trading session. Regrettably the minor gain came on low volume of only 54,000 shares. Normally PII trades on volume of 82,000 based on a three-month cumulative average. PII is one of our newer split candidates and although the company does not have a split history, fits the criteria we like for companies that could announce a split, such as having 23.7 million shares outstanding and 80 million authorized, enough for a 2:1 or a 3:1 split. While there are not any scheduled meetings for the company in the near future, with the number of authorized shares, a split announcement could be made at any time. As of the close of trading today, PII sits at support, the 20-dma at $47.25. Below that is some light support at $45.00, a former level of consolidation. Resistance is marked at the 10-dma at $47.86 and then at $49.00. Consider new plays if PII advances through immediate resistance on volume of 60,000 shares traded by midday. We will keep our stop loss below support at $44.88.

Picked on February 13th @ $48.70
Change since picked -1.20
Stop Loss at $44.88

February 20, 2001

Polaris Industries, the world's largest manufacturer of snowmobiles, made tracks in Orlando, Florida on Tuesday. Today, at the international snowmobile dealer convention in Orlando, PII introduced a new, more environmentally friendly snowmobile featuring a four-stroke engine designed specifically for snowmobiles. Polaris plans to begin limited production of the new cleaner, quieter snowmobile, called the Indy Frontier, in November. The news did little to help the stock, as the selling in the major indices pushed the stock into the red on Tuesday. Trading was lack-luster at best with only 50,000 shares changing hands, well off the three-month average of 83,000. We are playing PII as a stock split candidate and would look for a more bullish trend to emerge. PII has more than enough authorized shares for a split but does not have a split history. Still, we are optimistic that the company may soon elect to split its stock for the first time. Currently, PII sits just below resistance at $48.07, the 10-dma. Above that, look for the stock to be challenged at $49.00 and then the half-century mark. Support can be found at the 20-dma at $47.00 and then at $46.00, an area of previous consolidation. Possible new plays might include a bounce off support or a strong move higher on volume exceeding 60,000 traded by midday. We will keep our stop on this play below support at $44.88.

Picked on February 13th at $48.70
Change since picked -1.10
Stop Loss at $44.80

February 18, 2001

Polaris Industries Inc started the week with a bang but ended with a fizzle. On Tuesday, Polaris Industries, the manufacturer of all-terrain vehicles and outdoor recreational vehicles, rocketed to a new 52-week high only to spend the rest of the week in mild retreat mode. The net result for the week was a gain of $0.59 on less than average trading volume. Polaris trades on a 3-month average of 83,000 shares. This week, however, PII only mustarded an average of 79,000 shares. Next week we are looking for more of a definite trend to emerge and take the stock higher. If you are considering opening a new position in PII, here are a couple possible entry points. Look for a bounce off support at $47.00, the 20-dma, as one opportunity. Another might be a move through resistance at $48.00 and then $49.00 on heavy volume, meaning more than 60,000 traded by midday. At the end of last week investors reacted strongly to inflationary fears as well as sobering telecom news after big name companies in the sector issued profit warnings. In the coming week look for those fears to subside and some semblance of confidence to return to the market before you open a new play. This confidence will be marked by a rally in either the Dow Jones Industrial Average (INDU) or the NASDAQ Composite Index (COMPX) or both. We will keep our stop on this play just below support at $44.88.

Picked on February 13th at $48.70
Change since picked -0.95
Stop Loss at $44.88