Kimberly-Clark Corp. is principally engaged in the manufacturing and marketing throughout the world of a range of products for personal, business and industrial uses, mostly made from natural and synthetic fibers. For the FY ended 12/31/00, net sales increased 7% to $13.98B. Net income rose 8% to $1.8B. Revenues reflect increased sales of Personal Care products and higher prices. Earnings also reflect higher margins due to lower manufacturing costs.

April 1, 2001

KMB, a global leader in the production and marketing of numerous household and industrial products, has been a very strong market performer for the better part of a year. By supplying the world with products that people will always need, KMB has been able to maintain stable earnings. KMB is expected to post profits of $3.65 for fiscal 2001. The company has a very modest forward P/E of 18.6, which offers jittery investors a little bit of cushion in this nervous market. This fact partly explains why KMB has been able to hold its stock value while so many other stocks have floundered. KMB has spent the past several trading sessions consolidating its gains from earlier this year. This process may be nearing its completion, enabling the stock to resume its up trend. New positions can be added as KMB crosses over its 50-DMA of $67.88. Some of you may want to wait until it becomes clear that KMB will close above the 50-DMA on volume that put the stock on track to do 2 million shares by day’s end. Money Flow has been outstanding and the OBV is improving. Although the MACD is still negative, it appears to have stopped its decent and could be poised to trigger a buy signal soon. We are placing stops at $62.50 in case KMB brakes support at $65.50.

Picked on April 1st @ $67.83
Change since picked +0.00
Stop Loss $62.50

April 10, 2001

KMB has been able to outperform the market for more than a year now. It is not surprising then that the stock has taken a back seat as sideline cash piles into technology stocks, which are perceived to be a bargain. We have seen rotations out of cyclical value stocks like KMB into the technology sector before. The ebb and flow has a habit of reversing course. We fully expect KMB to renew its rally once the technology rally subsides. KMB's down days continue to be accompanied by relatively light volume. This fact is an indication that there are plenty of long-term investors in KMB, which helps the stock to maintain its value. The MACD is right on the verge of issuing a buy signal and probably will offer this signal with any decent KMB price advance of a point or more tomorrow. KMB may offer a good buying opportunity if it can climb above its 50-DMA of $68.28, especially if it accomplishes this move with midday volume exceeding 1.1 million shares.

Picked on April 1st @ $67.83
Change since picked -1.43
Stop Loss $62.50

April 8, 2001

KMB actually held its ground pretty well last week, especially after a bleak jobs report on Friday sent stocks plummeting again. By offering a slew of everyday household and industrial products, KMB has been able to maintain its earnings and has been very attractive to investors looking to own more fundamentally sound stocks. In fact, at its latest analyst meeting, KMB announced that it would be rolling out premoistened toilet paper to keep ahead of the very competitive consumer products industry. Whatever it takes, right? KMB is currently consolidating just below its 50-DMA of $68.13. This consolidation phase follows KMB's March test of the 52-week high of $73.25. A move back above $68.13, accompanied by midday volume of over 1.1 million, shares may prove to be an excellent entry point. It looks like KMB found some nice support at $64.56 on Friday. Be cautious if KMB falls below this support on Monday. Although the MACD is still negative, it will likely issue a buy signal if we see KMB advance two or more points on Monday. The Money Flow is still outstanding. This is largely due to the fact that down days in the stock price are accompanied by anemic volume, whereas up days have seen very good volume. This is a good sign that when KMB finally does get moving, it could really stage a powerful rally. Picked on April 1st @ $67.83
Change since picked -1.33
Stop Loss $62.50