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 8, 2001

It has been an interesting week so far for most medical equipment stocks. Generally speaking, these stocks were under some profit taking pressure in the beginning of the week due to investors focusing on the purchase of downtrodden technology stocks. Today, we saw some profit taking in technology stocks, which was good news for BDX shareholders. BDX was bolstered yesterday by the initiation of coverage of its stock by Banc of America Securities. The research firm placed a "Buy" rating on BDX. We suggested in Tuesday's update that BDX might be a compelling buy because the stock has found support at the 50-DMA, which closed today at $34.94. BDX has started to bounce off this support. Although the MACD is still negative, the OBV and Money Flow remain quite strong. BDX closed right at the resistance offered by the 10-DMA of $35.63. A positive move tomorrow, accompanied by first hour trading volume over 300,000, could signal the resumption of BDX's uptrend and may provide a good buying opportunity.

Picked on February 11th @ $37.03
Change since picked -1.38
Stop Loss @ $34.50

March 6, 2001

Most of the stocks on the NYSE that are not technology related were victims of some accelerating profit taking into the close. BDX, a major medical supply company, was unable to buck this trend, pushing the stock perilously close to our $34.50 stop. Nevertheless, BDX looks very tempting on a technical basis. Today's pullback, accompanied by relatively light volume of just over 700,000 shares, has brought BDX down to a test of very strong support provided by the 50-DMA, which closed today at $34.78. If we see some rotation out of the technology sector into the medical stocks tomorrow, BDX may be offering us an excellent buying opportunity at current prices. The very light downside volume has allowed the Money Flow and OBV to maintain their bullish readings. A resumption of the up trend could easily occur if BDX can trade above the resistance offered by the 10-DMA, which closed today at $35.94. Although we are close to our stop, traders may want to enter new positions if BDX can open flat to higher tomorrow. If BDX trades above $36.00 with first hour trading volume over 300,000 shares, the stock could possibly be on its way towards a retest of the 52-week high of $39.25.

Picked on February 11th @ $37.03
Change since picked -2.16
Stop Loss @ $34.50

March 4, 2001

BDX survived a somber week on Wall Street. The company's broad array of medical products, equipment and services has enabled the firm to maintain a healthy profit picture while so many other companies are struggling. Analysts expect BDX to increase its profits by over 14% in 2001. Lehman Brothers currently rates the stock a Strong Buy with a year-end target price of $42.00. Friday's early broad-based selling in the overall market caused BDX to dip below the short-term support of $35.00. We are encouraged, however, by the fact that the stock managed to rally into the close and finish the day above the support level. The 10-DMA provided resistance all last week and now resides at $36.28. We suggest that a move above $36.50 on midday volume over 700,000 shares could spark a more substantial rally that may lead to a test the 52-week high of $39.25. The OBV and Money Flow remain strong. This fact leads us to believe that BDX is simply in a consolidation phase and that the longer-term trend still remains positive. The RSI is in neutral territory. This fact affords the stock plenty of upside potential before an overbought signal is triggered. New low-risk positions can be entered as long as BDX can stay above $35.00 on Monday and midday volume exceeds 400,000.

Picked on February 11th @ $37.03
Change since picked -1.18
Stop Loss @ $34.50