Stericycle provides collection, transportation, treatment, disposal, reduction, reuse and recycling services for regulated medical waste to hospitals & other healthcare providers. For the FY ended 12/31/00, revenues totalled $323.7M, up from $132.8M. Net income applic. to Common fell 12% to $12M. Revenues reflect the acquisition of BFI. Earnings were offset by increased interest expensesdue to increased borrowings for the BFI acquisition.

April 5, 2001

Stericycle provides medical waste collection, transportation, and treatment services to more than 237,000 customers in the United States, Canada and Puerto Rico. Shares of SRCL have performed well over the last three months. Last week, the stock hit an all-time high of $47, representing an 81% gain from its intra-day low of $26 on January 10th. SRCL is currently consolidating in the $41.50-$46.50 range, and we believe that it may be ready for an earnings run. We are also looking for a split announcement with the earnings release scheduled for May 1st after the bell. The company has enough shares for a 3:2 split with 30 million shares authorized and 15.3 million shares outstanding. Going forward, SRCL has support at Wednesday’s intra-day high of $44.88 with additional support at $43.61, the 10-dma. Resistance is the all-time high of $47 and then possibly $49 or $50. Consider entry points on a bounce off of $44.88 or a breakout above $47.00 on volume of at least 125,000 shares by noon. We plan to place stops at $41.50 to limit potential losses.

Picked on April 5th @ $46.00
Change since picked +0.00
Stop Loss @ $41.50