Knight-Ridder is engaged in newspaper publishing, news and information services and graphics and photo services. KRI publishes 31 daily & 22 nondaily newspapers in 28 U.S. markets & maintains 45 associated Web sites. Forthe FY ended 12/31/00, revenues increased 6% to $3.21B. Netincome decreased 8% to $314.4M. Results reflect increased e-commerce and internet-related advertising, offset by higher labor, employee benefits and interest expenses.

March 4, 2001

Stock market investors have been engaging in a frantic search to find any stock in which they can confidently invest. We have had success recently finding companies outside of the technology universe that have been rallying higher on good momentum. Knight-Ridder, our latest potential winner, is a publisher of daily newspapers that also manages a news bureau information wire. Some of the company's better known properties include The Philadelphia Inquirer, The Miami Herald and The Detroit Free Press. Silicon Valley denizens have long been familiar with another one of the company's papers, The San Jose Mercury News. KRI also created SiliconValley.com, which is partnered with the San Jose Mercury News. These two KRI properties are highly respected for their ability to report about the cutting edge developments emanating from the technology center of this country. KRI was one of only a handful of stocks to establish a new high on Friday. Momentum traders may drive KRI much higher if the stock can trade above resistance of $61.25 on Monday with first hour volume over 250,000 shares. A positive start to the week will also likely result in a buy signal being triggered by the MACD. There is also resistance at the all time high of $65.00, which was established in October of 1999. Considering the dearth of momentum trading options in this market, it is not surprising that KRI’s Money Flow and OBV are very strong. We see excellent support being provided by the 20-DMA of $59.25. We are additionally encouraged by the fact that the RSI has plenty of room to the upside before the stock would be considered overbought.

Picked on March 4th @ $60.75
Change since picked +0.00
Stop Loss @ $57.00

March 11, 2001

We were a bit unlucky with this play. KRI just grazed our stop price of $57.00 during Friday's selling and subsequently recovered some of its losses. KRI also released some negative news last week (the details are in Thursday's update), which could preclude new investing in the stock, especially in this very jittery market.

Picked on March 4th @ $60.75
Profit/Loss -3.75 (6%) (Stopped on Friday @ $57.00)
Best Profit +0.00 (0%)