Texaco is engaged in the worldwide exploration for and production, transportation, refining & marketing of crude oil, natural gas liquids, natural gas & petroleum products. For the 9 months ended 9/30/00, revenues rose 46% to $36.70B. Net income applic. to common totalled $1.99B, up from $833M. Revenues reflect higher crude oil and natural gas prices. Earnings reflect an increase in gross profit & a decrease in exploratory costs.

February 18, 2001

Texaco is an integrated global energy company that operates in some 150 countries around the world. The company explores for and produces oil and natural gas, manufactures and markets high-quality fuels and lubricants, operates trading, transportation and distribution facilities and produces power. This weekend we are adding TX to our list of momentum plays because of the stock’s strong relative strength. The stock established a new 52-week high on Friday of $65.65 even in light of the fact that the broad markets both finished down more than 90-points. The company was recently given an upgrade to the "recommended purchase" list at Goldman Sachs. Additional good news for TX was the signing of a new deal with Nigeria for natural gas exploration. Nigeria, Africa's top oil producer and OPEC's sixth largest exporter only joined the big players in the natural gas export market in late 1999. If the exploration is successful, TX and other parties involved could stand to profit handsomely. If you like what you've heard so far and are considering opening a new play in TX, here are a few suggestions. Look for the stock to move higher on heavy volume and hit another new high as a possible entry point. Here heavy volume would mean more than 1 million shares traded by 1:00 EST. The stock normally trades about 1.4 million shares per day based on a 3-month average. Friday's new record was achieved on 2.3 million shares. Another opportunity might exist if the stock were to bounce off support at $64.22, the 5-dma, or another support level at $63.45 or $61.98, the 10 & 20-day moving averages. In either event, the volume will be critical when considering a new play. Additional support from the Dow Jones Industrial Average (INDU) and the Oil Service Index (OSX.X) would be helpful as well. We will place a stop loss on this play at $61.88.

Picked on February 18th at $64.90
Change since picked 0.00
Stop Loss at $61.88

February 22, 2001

Negative market conditions are having little effect on oil giant Texaco. On Wednesday, amidst a sea of red numbers in the broad market, TX came within $0.21 of a new 52-week high. Early in the day, the stock made a strong push to hit a record, but then was caught in the under-tow of selling that entered the market late in the session. At present, the stock seems to be consolidating at the $64-$65 level and may be set to move higher. Additional support exists at the 20-dma at $62.82. Traders considering TX for a play should look for a bounce off support at the 10-dma at $64.09 or a move through resistance at $65.00 on volume exceeding 1 million shares traded by midday. Also, look additional support from the Dow Jones Industrial Average (INDU) and the Oil Service Index (OSX.X). We will post our protective stop loss at $61.88.

Picked on February 18th @ $64.90
Change since picked -0.70
Stop Loss at $61.88

February 20, 2001

Texaco is looking at Venezuela to convert some "crude" results into $14 billion in capital investments. The integrated global energy company has been working on a joint venture to extract 272 billion barrels of previously unusable tar-like heavy crude oil from the earth and ocean floor in South America. Once excavated, the crude will be converted into marketable petroleum products worth billions of dollars. Regrettably, the news event did little to buoy the stock on Tuesday in the face of some heavy selling in both major markets. The stock held at its first level of support at 64.28, the 5-dma. Below that, additional support can be found at $63.75 and $62.29, the 10 and 20 day moving averages. As the stock rises, resistance will likely be encountered at $65 and $66. When considering starting a new play on TX, look for a bounce off a support level or a move through resistance on volume surpassing 1 million shares traded by midday. Continue to use the strength of the Dow Jones Industrial Average (INDU) and the Oil Service Index (OSX.X) when contemplating opening a new position. We will post our protective stop loss at $61.88.

Picked on February 18th at $64.90
Change since picked -0.14
Stop Loss at $61.88