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 8, 2001

Performance Food Group, a leading food product supplier, sold off on Thursday after the company announced that it plans to acquire privately owned Empire Seafood Holding Corp. for approximately $70 million in cash, common stock, and the assumption of certain liabilities. On Thursday, shares of PFGF traded to an intra-day low of $48.50 on light volume of 74,700 shares. The stock closed below its 20-dma and it has hit 4 consecutive lower highs on weak volume. The MACD is turning negative so the stock may continue to slide unless we get some decent volume on an upward move. Until then, PFGC has support at Thursday’s intra-day low of $48.50 with stronger support at the February 21st intra-day low of $47.13. Resistance has come in at Thursday’s intra-day high of $50.50 and then Monday’s intra-day high of $53.38. Traders may consider entry points on a bounce off of $48.50 or a move above $50.50 on volume greater than 100,000 shares by noon. We are keeping our stops at $47 to limit potential losses.

Picked on February 25th @ $50.13
Change since picked –1.56
Stop Loss @ $47.00

March 6, 2001

Performance Food Group Company has been under pressure over the last two sessions thanks to a negative earnings announcement from H.J. Heinz Co. (HNZ). On Tuesday, shares of PFGC fell to an intra-day low of $48.50 on light volume of 46,000 shares. The stock broke its upward trend on weak volume, so it may be able to snap back if the volume returns. Hopefully, PFGC will not close below the 20-dma as it attempts to put in a bottom. From a technical standpoint, support is the 20-dma at $48.54 with additional support at $47.13, the February 21st intra-day low. Resistance has fallen to the 10-dma at $50.86 and then the 5-dma at $52.10. A bounce off of $48.54 or a move above $50.86 on midday volume of at least 100,000 shares may be possible entry points. We are keeping our stops at $47 to limit potential losses.

Picked on February 25th @ $50.13
Change since picked –1.07
Stop Loss @ $47.00

March 4, 2001

Food product manufacturer Performance Food Group Company ran into some resistance on Friday. Shares of PFGC fell to an intra-day low of $50.88 before bouncing back to close at $53.69 on extremely light volume of 45,800 shares. The stock has had a firm upward trend, but the daily volume has been trending lower, potentially indicating that PFGC may spend some time consolidating in the $50-$55 range. However, a positive volume surge could send the stock into record territory. For now, support has fallen to the 5-dma at $52.15 with stronger support at $50.21, the 10-dma. Resistance is holding steady at the December 29th intra-day high of $55.13 and then the all-time high of $56.75. Consider starting new plays on a bounce off of $52.15 or a move above $55.13 on volume greater than 100,000 shares by noon. We are leaving our stops at $47 as downside protection.

Picked on February 25th @ $50.13
Change since picked +3.56
Stop Loss @ $47.00