PHCC distributes specialty pharmaceuticals and related medical supplies to the alternate site healthcare market and provides patient specific, self injectable biopharmaceuticals and disease treatment programs. For the FY ended 12/30/00, revenues rose 37% to $584.7M. Net income rose 36% to $28.1M. Results reflect increased patients and increased new disease states servicing, partially offset by higher SG&A expenses.

March 4, 2001

Priority Healthcare Corporation is a national specialty pharmacy and distribution company that provides specialized pharmaceutical services for patients with chronic diseases or genetic disorders that require high-cost, complex therapies. This weekend we welcomed PHCC to our list of momentum plays on the heels of the stock achieving a new 52-week high of $43.75 on Friday. Let's back up a bit to the events leading up to the new high. On February 22nd PHCC released their most recent earnings report which came in one cent above expectations. Since that date PHCC has risen 22% and now looks poised to move even higher. This has been a great year for investors of PHCC, since December the stock has nearly doubled in value; from a mid-December low of $22.89 to Friday's high of $43.75. The only dark cloud hanging over PHCC's new high was the fact that volume came in slightly lower than the average. Normally PHCC trades about 541,000 shares based on a three-month average, but Friday's high was recorded on volume of only 491,000. So going into next week we will look for volume to build as PHCC attempts new highs. Possible entry points might include a bounce off support at $42.00 or a new move higher to $44.00. We'd like to see volume of 400,000 traded by midday when considering starting a new position. Additional support exists at the 5-dma at $41.00, should the consolidation area at $42.00 fail. Look for additional support from the NASDAQ Composite Index (COMPX) and the CBOE Health Care Index (HCX.X) when considering starting a new play. We will post a stop loss at $39.00 on this play.

Picked on March 4th at $42.50
Change since picked 0.00
Stop Loss at $39.00

March 8, 2001

Priority Healthcare made fractional gains on Thursday on very low trading volume. PHCC has been forming a wedge pattern on its chart since last week. As the trading has become tighter, the pinnacle of the "wedge" is forming and the stock looks poised to breakout. If this does occur, consider opening a new position on PHCC if the stock advances through resistance at $44.00 on strong volume of 400,000 shares traded by midday. But be cautious of advances toward resistance on shrinking volume; this historically is not considered a bullish sign. The Dow Jones Industrial Average (INDU) showed us how to close an index on a strong note today. Traders consider it bullish when a stock or an index closes at the high of the day provided that ample volume accompanied the move. Look for similar activity in the NASDAQ Composite Index (COMPX) or the CBOE Health Care Index (HCX.X) when considering starting a new play. We will post a stop loss at $39.00 on this play.

Picked on March 4th @ $42.50
Change since picked +$0.13
Stop Loss at $39.00

March 6, 2001

Priority Healthcare, which specializes in pharmaceutical services for patients with chronic diseases or genetic disorders, opened the week with a new high. On Monday PHCC traded up to $44.25 intra-day on volume of 742,000 shares, which is 36% higher than the three-month average of 545,000. PHCC is one of our newest momentum plays; we began coverage on this play on Sunday. The stock has been performing well over the past few months and Monday's activity proved to us that there is more profit potential in PHCC. Traders might want to considered a position if the stock can bounce off support at the 5-dma at $42.50 or move through resistance at $44.25 on 400,000 shares traded by noon. Look for additional support from the NASDAQ Composite Index (COMPX) and the CBOE Health Care Index (HCX.X) when considering starting a new play. We will post a stop loss at $39.00 on this play.

Picked on March 4th at $42.50
Change since picked +$0.88
Stop Loss at $39.00