McCormick & Company, a diversified specialty food company, is engaged in the manufacture of spices, seasonings, flavors and other specialty food products and sells products to the consumer food market, the foodservice market and to industrial food processors. For the 3 months ended 2/01, revenues rose 15% to $533.5M. Net income from cont. ops. rose 15% to $21.2M. Results reflect increased unit volume and a lower effective income tax rate.

March 29, 2001

McCormick & Company, Inc. provides a wide variety of spices, herbs, seasonings, and other specialty food products to the food industry. The company also manufactures plastic bottles and tubes for the food and personal care industries. MKC broke out of its three-year $26-$36 trading range in late November. The stock then spent two months consolidating in the $34-$38 range. On February 12th, shares of MKC broke out on heavy volume and continued to move higher into the earnings release on March 19th. The stock sold off on profit taking just prior to, and just after, the earnings release. We believe that MKC has shaken off its post-earnings depression and could be ready to break out to new highs. We are also looking for a possible split with its next BoD meeting or with the June earnings release. The company has enough shares for a split with 160 million shares authorized and 60.4 million shares issued. MKC announced its last three splits when the stock was trading in the $35-$45 range, so it is currently trading within historic split range. Going forward, support is the 5-dma at $40.80 with stronger support at $40.35, the 20-dma. Resistance is the all-time high of $41.58 and then possibly $43. Traders may consider entry points on a bounce off of $40.80 or a breakout above $41.58 on volume of greater than 65,000 shares by noon. We plan to set stops at $38.75 to limit potential losses.

Picked on March 29th @ $41.43
Change since picked +0.00
Stop Loss @ $38.75

April 5, 2001

McCormick & Company hit an all-time high on Thursday after filling in the gap created on March 30th. Shares of MKC traded as high as $42.50 just before Thursday’s closing bell. Volume has been trending lower over the past two weeks and this could put a drag on the short-term upward trend. However, the volume remains relatively normal on a 6-month basis so the long-term upward trend should be able to hold. In the meantime, support is Monday’s intra-day high of $42.25 with additional support at $41.57, the 5-dma. Resistance was taken out on Thursday so new resistance may show up at $43 or $44. Look for a bounce off of $42.25 or a breakout above $43.75 on midday volume of at least 90,000 shares before starting new plays. We are keeping our stops at $38.75 to limit potential losses.

Picked on March 29th @ $41.43
Change since picked +1.04
Stop Loss @ $38.75

April 3, 2001

McCormick hit an all-time high of $42.25 on Monday. However, the stock sold off slightly on Tuesday while the rest of the market tanked. Shares of MKC traded to an intra-day low of $41.45 before bouncing back to close at $41.65 on volume of 138,000 shares. MKC is slowly working its way higher, although the daily volume has been trending lower. The stock may spend some time consolidating in the $41-$42 range until the volume picks up. For now, support is Tuesday’s intra-day low of $41.45 with stronger support at $40.95, the 10-dma. Resistance is Tuesday’s intra-day high of $41.85 and then the all-time high of $42.25. A bounce off of $41.45 or a breakout above $41.85 on midday volume greater than 80,000 shares may be possible entry points. Our stops remain at $38.75 as downside protection.

Picked on March 29th @ $41.43
Change since picked +0.22
Stop Loss @ $38.75

April 1, 2001

McCormick & Company traded higher on Friday as the food sector regained its momentum. Shares of MKC hit an all-time high of $42.20 before pulling back to close at $41.99 on strong volume of 597,000 shares. The stock has broken through resistance on four times its average daily volume so it could continue to make new highs as we approach earnings season. The company currently has enough shares for a split and the stock is trading within historic split range. MKC announced its last three splits when the stock was trading in the $35-$45 range so we are looking for a split out of its next BoD meeting of with the June earnings release. In the meantime, support is the 5-dma at $41.26 with additional support at $40.68, the 10-dma. Resistance has moved up to the all-time high of $42.20 and then $43 or $45. Look for entry points on a bounce off of $40.80 or a breakout above $42.20 on volume of at least 80,000 shares by noon. We are keeping our stops at $38.75 to limit potential losses.

Picked on March 29th @ $41.43
Change since picked +0.56
Stop Loss @ $38.75