Sigma-Aldrich develops, manufactures and distributesa broad range of biochemicals, organic chemicals, chromatography products and diagnostic reagents. For the FY ended 12/31/00, revenues rose 3% to $1.1B. Net income from continuing operations fell 6% to $139.1M. Revenues reflect higher fine chemical laboratory products and scienceproducts sales. Net income was offset by higher S/G/A costsas a percentage of sales due to marketing initatives.

March 20, 2001

Specialty-chemical manufacturer Sigma-Aldrich bucked the overall market trend to move higher today, as some traders continue to look for any semblance of safety on the long-side of the market. What’s more, Tuesday marked the third-consecutive day that SIAL made for higher ground. Today’s move came on better-than-average volume of 915,000 shares, nearly double the three-month average of 525,000, so there was some conviction behind the buying. With the recent rally, SIAL has caught support at what appears to be a consolidation base at $43.00, which should be bolstered by the 10-dma at $45.08. Above, SIAL has immediate resistance at the March 9 intra-day high of $46.06 followed by today’s intra-day high of $47.50. With the MACD set to turn positive, we wouldn’t be surprised if SIAL takes out immediate resistance sooner rather than latter. With that said, traders interested in taking a position in SIAL could consider an entry point on a move through the March 9 high of $46.06 on 300,000 shares traded by noon. Should SIAL fall apart, however, we will limit our losses with a stop-loss just below the 40-dma at $42.25

Picked March 20th @ $45.44
Change since picked 0.00
Stop Loss @ $42.25

March 22, 2001

We entered SIAL on the belief that the stock's extended uptrend would persist and that new highs would be established. On the day we picked the stock, just tw days ago, shares had broken into new intraday territory and set an all time high of $47.50. Unfortunately, a rally back to this level was never achieved and SIAL didn’t fulfill what the chart indications were telling us. That aside, we feel that Sigma Aldrich is a fundamentally sound company that could yield us plenty of upcoming plays.

Picked on March 20th @ $45.44
Profit/Loss = -3.19 (-7%) (Stopped Thursday @ $42.25)
Best Profit = +0.69 (+1%)