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

March 1, 2001

Polaris has been losing ground daily since hitting a new high this past Monday. PII was slapped with a downgrade from "Buy" to "Neutral" from the investment firm USB Piper Jaffray. This, coupled with a decidedly negative market, has wreaked havoc on the stock this week, which is down 10% from Monday's close. Thursday, the stock traded on better than twice its normal volume as more than 180,000 shares changed hands. PII is now just above former consolidation at $46.00. Resistance will be challenged at the 20-dma at $47.88. If you are looking at starting a new play, consider a bounce off support or a move through resistance on volume surpassing 100,000 traded by midday. We will keep our stop loss in place just above the 50-dma at $44.88.

Picked on February 13th at $46.70
Change since picked -0.55
Stop Loss at $44.88

February 27, 2001

Polaris Industries rocketed to a new high on Monday only to return to earth today. On Sunday, we picked PII as our play of the day for Monday. Those of you who jumped on board weren't disappointed, as this manufacturer of all-terrain vehicles and outdoor equipment vaulted to a new 52-week high of $51.65. On Tuesday, extreme volatility coupled with a downgrade from "buy" to "neutral" from the investment firm USB Piper Jaffray sent PII tumbling and all of Monday's gains were lost. The drop was halted by support, which caught the falling stock at the 20-dma. The next level of support is down at the 50-dma at $44.03. Resistance is once again looming overhead at the 10-dma at $48.36 and then the half-century mark. If you are considering a new play on PII, watch for a move through resistance, or a bounce off the 20-dma, on good volume of 100,000 traded by midday. We will keep our stop loss in place just above the 50-dma at $44.88.

Picked on February 13th at $48.70
Change since picked -1.02
Stop Loss at $44.88

February 25, 2001

The way the NASDAQ has been acting lately, it’s easy to forget that there are still pockets of strength to be found. PII is obviously planted square in the middle of one of these pockets, as the stock withstood last weeks selling pressure like a champ. Polaris Industries manufactures and markets numerous types of all-terrain vehicles such as snowmobiles and personal watercraft. On Friday, the Minnesota based company achieved a nearly 3% gain for the day on fantastic volume and came within 23 cents of hitting a new high. Normally the stock trades about 82,000 shares, based on a 3-month trading average but Friday’s session saw 193,000 shares changing hands. On Thursday we suggested that if the stock rose through resistance on better than 60K volume traded by midday, it might make a good entry point. We were pleasantly surprised to see the nice volume accompany the move through resistance. In addition, the MACD looks to be rounding out and may be close to issuing another buy signal. For now we will watch to see if support holds at the 10-dma at $47.95 and then the 20-dma at $47.38. Resistance comes in at the present 52-week high of $49.22 and above that, expect a challenge at the half-century mark. Consider opening a position if PII bounces off support or rises through resistance on volume exceeding 75,000 traded by midday. A cooperative market with strength in the S&P 500 (SPX.X) would be a helpful combination when looking to start a new play. We will keep our stop loss at $44.88 for now.

Picked on February 13th @ $48.70
Change since picked +0.11
Stop Loss at $44.88