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

April 5, 2001

Shares of this major food distributor lightly participated in today's monster NASDAQ (COMPX) comeback rally. The good news came yesterday when PFGC announced that it had completed its acquisition of Empire Seafood Holding Group. PFGC expects the purchase to immediately add 1 to 2 cents to its fourth quarter profits. PFGC fell just short of the $54.50 resistance during trading today. PFGC may be poised to make a substantial rally once this triple top resistance is conquered. Therefore, traders may want to add to positions tomorrow if PFGC can trade above $54.63 with first hour trading volume of 30,000 shares or more. Also please note that we have raised our stop to $51.25, which is just below the support offered by the 10-DMA of $51.88. The longer term picture for PFGC continues to be encouraging due to a rising MACD and the nice move that the OBV has been making this week.

Picked on March 25th @ $49.50
Change since picked +3.88
Stop Loss @ $51.25

April 3, 2001

The plummeting NASDAQ had very negative breadth today. Decliners smashed advancers by a ratio of 30 to 8. Considering this fact, we were quite pleased that PFGC, a major food supplier, was able to muster a solid advance of almost a point today. PFGC's action was even more impressive when one considers that the stock closed on its high print of the day while the NASDAQ showed a lot of weakness into the close. Traders will definitely consider these facts when they start looking for stocks to buy when the market enjoys its next inevitable bounce. The 10-DMA provided pretty good support today just under $51.00. Therefore, traders could consider adding to their positions if PFGC can stay above $50.50 in the event of more market weakness in the early going tomorrow. We don’t expect that to be a problem, though, as the MACD and the Money Flow are still trending higher.

Picked on March 25th @ $49.50
Change since picked +3.06
Stop Loss @ $46.00

April 1, 2001

PFGC is likely to be resistant to an economic slowdown because it is a major food processor and distributor. People still have to eat, no matter how severe the economic slowdown becomes. PFGC is fast becoming a split candidate now that the stock is trading in the $50's. The company's last split was nearly five years ago so it could be that PFGC is overdue for a split announcement. PFGC was pretty volatile last week. The stock spiked up to $54.38 and just as quickly pulled back to $48.75. These two prices will likely present the respective support and resistance levels for this coming week's trading. If Friday's momentum carries over to Monday, look to possibly enter a position if PFGC can cross over $54.38, especially if the stock enjoys midday volume over 70,000 shares. This move would be a breakout of an inverse head and shoulders formation, which is usually very bullish. The MACD is rising and this tells us that PFGC should continue trending higher. The Money Flow is outstanding, which also implies further gains for PFGC. It is also encouraging to see that the RSI has some room before PFGC would be considered overbought. Our stop remains firm at $46.00 to limit losses.

Picked on March 25th @ $49.50
Change since picked +3.00
Stop Loss @ $46.00