PFGC is engaged in the marketing, processing and sale of food and food-related products to restaurants, hotels, cafeterias, schools, hospitals and other businesses and institutions. For the FY ended 12/30/00, net sales increased 27% to $2.61B. Net income rose 40% to $26.9M. Revenues benefitted from acquisitions and increased sales in existing operations. Net income also reflects the absence of a $3.8M nonrecurring merger expense.

February 25, 2001

Performance Food Group Company provides over 25,000 food products to both traditional customers and multi-unit chain customers in the foodservice industry. Shares of PFGC have been relatively hot over the past year. The stock has risen from a 52-week low of $19 on March 14th to an all-time high of $56.75 on December 27th. Since then, PFGC started a downward move with a small bump in front of its February 6th earnings release. However, the stock began to rebound following the company’s presentation at the Salomon Smith Barney Emerging Growth Stocks Conference on February 15th. We believe that PFGC is beginning the last leg of a double-bottom pattern that could send the stock into the high $60’s. The company currently has enough shares for a split, with 50 million shares authorized and 17.3 million shares outstanding. The stock price is above its previous split range so we could get a split out of their next BoD meeting or with the May earnings release. Going forward, PFGC has support at Wednesday’s intra-day high of $49.48 with additional support at $48.27, the 5-dma. Resistance is the February 2nd intra-day high of $50.50 and then the January 31st intra-day high of $53.44. Traders should be looking for entry points on a bounce off of $49.48 or a move above $50.50 (the double-bottom pivot point) on volume of at least 100,000 shares by noon. We plan to use stops at $47 to limit potential losses.

Picked on February 25th @ $50.13
Change since picked +0.00
Stop Loss @ $47.00

March 1, 2001

Performance Food Group Company has been trading higher despite a generally weak market. On Tuesday, shares of the food product manufacturer hit an intra-day high of $53.75 after trading as low as $51.50 early in the session. The stock continues to make higher highs coupled with higher lows and its upward trend remains strong. Unfortunately, the volume has been unimpressive so the stock may run into resistance in the near future unless the volume picks up. Going forward, support is currently at Wednesday’s intra-day high of $53 with additional support at $51.44, the 5-dma. Resistance has moved up to the December 29th intra-day high of $55.13 and then the December 27th intra-day high of $56.75. Traders should be looking for a bounce off of $53 or a move above $55.13 on midday volume of at least 100,000 shares before starting new plays. Our stops remain at $47 to limit potential losses.

Picked on February 25th @ $50.13
Change since picked +3.38
Stop Loss @ $47.00

February 27, 2001

Food product manufacturer Performance Food Group has posted a small gain over the past two days. On Tuesday, shares of PFGC traded to an intra-day high of $50.81 before pulling back to a close of $50.56 on volume of 118,000 shares. The stock has made three straight higher highs and its upward trend remains steady. PFGC was able to break through resistance and close above $50.50 for the first time since December 29th so it could continue to rally. For now, PFGC has support at Friday’s intra-day high of $50.25 with stronger support at $49.61, the 5-dma. Resistance has moved up to the December 29th intra-day low of $51.19 and then the January 31st intra-day high of $53.44. Traders may consider opening new positions on a bounce off of $50.25 or a move above $51.19 on volume greater than 100,000 shares by noon. We are keeping our stops at $47 as downside protection.

Picked on February 25th @ $50.13
Change since picked +0.44
Stop Loss @ $47.00