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.

March 25, 2001

PFGC, a major supplier of food products to restaurants, hotels, schools and hospitals, could be on the verge of another price breakout. For most of this year, PFGC has seen quick spikes in its price following a period of consolidation around its 50-DMA. Currently, this moving average is slightly below $48.00 and PFGC has been consolidating right around this price for two weeks. By closing right on its high for the week on Friday, PFGC may be ready for another spike up this week. New positions could be considered if PFGC opens higher on Monday. If you see a gap up, you may want to wait for a little pullback in the first few hours of trading before jumping on board. In addition to PFGC’s strong chart, we believe that the stock is a split candidate, now that the stock has climbed back above $45.00. A move higher this week would likely be confirmed by a MACD that turns positive. Money Flow is also quite strong. A quick advance would have plenty of upside potential before the RSI issues an overbought signal.

Picked on March 25th @ $49.50
Change since picked +0.00
Stop Loss @ $46.00

March 29, 2001

PFGC continues to trade in a predictable and repetitious pattern. Our last write-up suggested that quick rallies in the past have resulted in quick retracements. Sure enough, Tuesday's spike to just below the $54.50 resistance resulted in a quick pullback today. So where does the stock go from here? We would not be surprised if PFGC once again tests its 50-DMA, which closed today at $48.31. We see another good opportunity to enter new positions if PFGC tests $48.31 and bounces. Some of our favorite technical indicators are solid, despite the quick retracement. The MACD is now positive and Money Flow is still excellent. Even though PFGC is pretty volatile, these technical indicators tell us that PFGC should be able to work its way higher. Finally, a move above the double top resistance of $54.50 could really get this stock trending strongly higher.

Picked on March 25th @ $49.50
Change since picked +0.50
Stop Loss @ $46.00

March 27, 2001

We could hardly ask for a better start for our new play. PFGC opened yesterday at $48.75 and has enjoyed a nice spike up. Our initial analysis, suggesting that PFGC has a history of quick rallies following a consolidation at its 50-DMA, has come to fruition. As good as the start to this play has been, it may be time to become cautious, because PFGC also tends to retrace fast rallies quite quickly. Still, momentum traders may be interested in looking for another quick gain if PFGC can trade above $54.50 and accomplish this move with midday volume of 60,000 shares. Another good entry point may be around $52.50, which would be a 50% retracement of this week's move. Current technical indicators such as the MACD, Money Flow and OBV do point towards more gains for PFGC over the longer term. With that said, we could see a test of the 52-week high of $56.75 later this week if the broad market rally continues.

Picked on March 25th @ $49.50
Change since picked +4.13
Stop Loss @ $46.00