UNP operates through subsidiaries in the areas of rail transportation (Union Pacific Railroad Co. and SouthernPacific Rail Corp.) and trucking (Overnite Transportation Company.). For the FY ended 12/31/00, revenues rose 6% to $11.88B. Net income from cont. ops. rose 8% to $842M. Revenues reflect higher Intermodal, Energy and Agricultural segments sales. Higher income also reflects improved operating efficiency.

April 3, 2001

Union Pacific operates a Class I railroad spanning 33,000 route miles throughout the United States. The company also provides trucking services for less-than-truckload shipments. Shares of UNP have been trending higher for the past five months following nine months of sideways trading in the $35-$45 range. The stock is currently on a two-week bounce after a successful test of the $50 mark and the 100-dma on March 16th. The stock has been gaining momentum due to the recent buzz surrounding the coal transportation sector. We believe that UNP could reach new 52-week highs as we move closer to its earnings announcement on April 26th before the bell. From a technical standpoint, support is the 5-dma at $56.59 with additional support at Friday’s intra-day low of $55.90. Resistance is Monday’s intra-day high of $57.63 and then the $58.25, the 7/9/99 intra-day low. Traders may consider starting new plays on a bounce off of $56.59 or a breakout above $57.63 on volume greater than 500,000 shares by noon. We plan to set stops at $54.50 to limit potential losses.

Picked on April 3rd @ $57.35
Change since picked +0.00
Stop Loss @ $54.50

April 5, 2001

Union Pacific Corporation has been selling off after trading to a 52-week high during Monday’s session. On Thursday, shares of UNP hit an intra-day low of $55.85 before bouncing back to a close of $56.25 on heavy volume of 1.96 million shares. The stock has traded to lower highs in each of the last three sessions and the stock closed below the 5-dma for the first time since March 20th, breaking its upward trend. However, UNP was able to rally after touching in the 10-dma over the past two days so the stock could make a speedy recovery. For now, support is the 10-dma at $55.84 with stronger support at $55.36, Wednesday’s intra-day low. Resistance is the 5-dma at $56.72 and then Wednesday’s intra-day high of $57.15. Traders may consider entry points on a bounce off of $55.84 or a move above $56.72 on volume greater than 500,000 shares by noon. Our stops remain at $54.50.

Picked on April 3rd @ $57.35
Change since picked –1.10
Stop Loss @ $54.50