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 15, 2001

Performance Food continued to slide on Wednesday. The stock fell to an intra-day low of $45.94, triggering our stops along the way. We were stopped out at $47, so we are dropping PFGC tonight.

Picked on February 25th @ $50.13
Profit/Loss = -3.13 (–6%) (Stopped Wednesday @ $47.00)
Best Profit = +4.38 (+9%)

March 13, 2001

Food product manufacturer Performance Food Group Company has been struggling after hitting an all-time high of $54.50 on March 2nd. On Tuesday, shares of PFGC traded to an intra-day high of $48.13 before pulling back to close at $47.75 on light volume of 54,100 shares. The stock has made seven consecutive lower highs and four consecutive lower lows on weak volume. PFGC fell below the 50-dma on Monday, so it could remain in a downward trend until the volume returns. Until then, support is Tuesday’s intra-day low of $47.25 with additional support at the 100-dma, currently at $46. However, we plan to exit if the stock traded below $47. Resistance is the 20-dma at $49.16 and then $50.38, the 10-dma. Traders may consider entry points on a bounce off of $47.25 or a move above $49.16 on volume greater than 70,000 shares by noon. We are leaving our stops at $47 to limit potential losses.

Picked on February 25th @ $50.13
Change since picked –2.38
Stop Loss @ $47.00

March 11, 2001

Performance Food Group Company held its ground on Friday after testing support at the 50-dma. Shares of the food product manufacturer ended Friday’s session at $48.88 with 166,000 shares changing hands. The stock remains in a downward trend but the volume has been picking up so PFGC may be able to find a bottom. Unfortunately, PFGC may spend some time building a base in the $48-$51 range before it moves to new highs. Despite the recent weakness of PFGC, the stock is still trading above its previous split price and the company has enough shares for a split, with 50 million shares authorized and 17.3 million shares outstanding. We are looking for a split announcement with the May earnings release or out of the next BoD meeting. In the meantime, support is Thursday’s intra-day low of $48.50 with additional support at $48.19, the 50-dma. Resistance has fallen to the 5-dma at $49.65 and then the 10-dma at $50.90. When initiating new positions, look for a bounce off of $48.19 or a move above $49.65 on midday volume of at least 100,000 shares by noon. We are keeping our stops at $47 as downside protection.

Picked on February 25th @ $50.13
Change since picked –1.25
Stop Loss @ $47.00