Becton, Dickinson and Company manufactures and sellsa broad line of supplies, devices and systems used by healthcare professionals, medical research institutions and the general public. For the 3 months ended 12/31/00, revenues fell 2% to $843.3M. Net income decreased 19% to $60.6M. Results reflect unfavorable foreign exchange translation, remaining inventory reductions at the trade level, and the discontinuation of certain distributor incentive programs.

February 11, 2001

BDX is engaged in the manufacture and sales of a diverse array of medical products and systems. It has long been known to offer products of a superior quality. BDX outperformed the market last week after Lehman Brothers reiterated its “Strong Buy” rating on the company. Currently, Lehman Brother's year-end target price for BDX is $42.00 or 25.5 times expected 2001 earnings (fairly modest). The research firm also noted that an increase in sales due to new Federal safety requirements will likely come sooner than later because the compliance date for the new rules has been moved up to April 18th from August 1st. On Friday, BDX closed only a penny below a newly established 52-week high. A move above $37.04 may prove to be an excellent entry point for momentum traders. A run to resistance at $40.00, established in mid-1999, could occur quickly if the stock trades above $37.04. A bounce off support offered by the 10-DMA just below $36.00 may also prove to be a good entry point. The MACD is rising, which suggests the continuation of the positive trend. Money Flow is very strong and is establishing new highs, which also casts a positive light on the potential for more gains.

Picked on February 11th @ $37.03
Change since picked +0.00
Stop Loss @ $34.50

March 1, 2001

This play survived the Dow Industrials (INDU) morning swoon of just over 200 points. BDX, a major supplier of a wide variety of medical products and equipment, appears to be one of the few stocks that people are comfortable holding while market participants anxiously await the Fed's next move. BDX may have been further buoyed during today's wild swings due to a presentation the company gave concerning its future business prospects at the Lehman Brothers Healthcare Conference. Although we do not know exactly what was said, companies generally put a positive spin on future business prospects during these type of conferences in order to encourage investment in their stock. As for trading, BDX may be very close to completing a consolidation phase that followed the establishment of a new 52-week high of $39.25. We expect a quick rally to retest this high if BDX can trade to $37.00 on midday volume over 700,000 shares. Otherwise, we remain comfortable adding positions, as long as the stock stays above the $35.00 support. Further boosting our confidence is the fact that OBV and the Money Flow both appear poised to move to higher ground.

Picked on February 11th @ $37.03
Change since picked -0.97
Stop Loss @ $34.50

February 27, 2001

BDX has held its ground despite a scathing report on the company from 60 Minutes this past Sunday. Healthcare workers in 11 states have filed a class action suit against BDX, the largest supplier of hypodermic needles, claiming that the company should do more to protect them from accidentally contracting diseases following needle pricks. BDX has officially stated that it challenges the class action status of the suit and it will "vigorously" defend itself against the allegation. Despite the bad news, BDX appears to have developed some pretty good support at $35.00 by trading to that level and bouncing on Friday and Monday. A move above $36.85 on midday volume over 700,000 shares would likely be a good place to enter a position in anticipation of a move to test the 52-week high of $39.25. Down days continue to be accompanied by less volume than up days, which is helping the Money Flow and OBV to remain strong. The recent pullback has allowed the RSI to settle into neutral territory, which gives the stock plenty of upside potential before becoming overbought.

Picked on February 11th @ $37.03
Change since picked -1.14
Stop Loss @ $34.50

February 25, 2001

BDX manufactures and supplies a wide array of medical products and equipment. Some of the Company's products include hypodermic kits, anesthesia and general surgical equipment and specimen collection products and services. Investor interest in BDX is possibly fueled by the recession resistant nature of medical products. BDX is trading at a forward P/E of 21.46. The forward P/E number assumes that BDX will meet analysts profit estimates of $1.64 per share during the 2001 fiscal year, which ends in September. BDX's stock valuation is relatively modest for a company that has exhibited stable growth. Current stock price action is showing that BDX is going through a period of consolidation following the establishment of a new high of $39.25 on February 13th. The all time high for the share price of BDX is $49.63. This price was achieved in October of 1998. We were disappointed to see BDX fail to hold the $36.00 support on Friday. A move above the 20-DMA of $36.31 Monday, with first hour volume of over 300,000 shares, may prove to a good entry point. OBV and Money Flow are both still strong. This is attributable to the fact that down days usually have had lighter volume than up days. Apparently there is not a whole lot of conviction on the part of the sellers. If the broader market starts to recover from its current oversold levels this week, look for BDX to work its way back towards the 52-week high of $39.25.

Picked on February 11th @ $37.03
Change since picked -1.83
Stop Loss @ $34.50