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 10, 2001

McCormick & Company is trending higher at a slow and steady pace. On Monday, the stock hit an all-time high of $42.94 before pulling back to close at $42.01 on volume of 195,000 shares. Daily volume has been cooling down over the past week and MKC appears to be falling back on its long-term upward trend which is much more sustainable. From a technical standpoint, the stock has support at the 5-dma, currently at $42.23, with additional support at Tuesday’s intra-day low of $42. Resistance remains at Friday’s intra-day high of $42.60 and then the all-time high of $42.94. Traders may consider entry points on a bounce off of $42.23 or a move above $42.60 on volume of at least 75,000 shares by noon. We are keeping our stops at $38.75 to limit potential losses.

Picked on March 29th @ $41.43
Change since picked +0.97
Stop Loss @ $38.75

April 8, 2001

McCormick & Company traded to an all-time high of $42.60 on Friday. Unfortunately, the stock could not stay in positive territory as the rest of the market sold off. Shares of MKC ended the session at $42.15 on volume of 135,000 shares. The stock is losing steam on declining volume so MKC may break the short-term (2-week) upward trend and fall back to the long-term (1-year) upward trend. The stock is currently trading within its historic split range and the company has enough shares for a split with 160 million shares authorized and 61 million shares issued. MKC is expected to announce earnings in June so we may get a split announcement with the release. Until then, support has fallen to Friday’s intra-day low of $41.90 with stronger support at $41.45, Monday’s intra-day low. Resistance has come in at Friday’s intra-day high of $42.60 and then $43. A bounce off of $41.90 or a breakout above $42.60 on midday volume greater than 90,000 shares may be possible entry points. Our stops remain at $38.75.

Picked on March 29th @ $41.43
Change since picked +0.72
Stop Loss @ $38.75