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 10, 2001

PFGC managed to maintain investor interest so far this week despite a decided focus on buying battered technology stocks. PFGC, which is a huge supplier of thousands of food products, continues to attract investment because of its stable earnings and a reasonable P/E of 29.84. Still, the stock is finding the $54.50 resistance level tough to surpass. During the past week, the 5-DMA has provided excellent support and today it closed at $53.41. Please note that we have raised our suggested stop to $52.50. The very strong MACD and OBV are encouraging signs that PFGC may be able to continue its advance. The RSI is confirming the possibility for more gains because this indicator is telling us that PFGC has some upside room before becoming overbought. That said, a move above this resistance accompanied by first hour trading volume approaching 50,000 shares could prove to be an excellent trading opportunity. Should that happened, momentum may enable the stock to establish a new 52-week high above $56.75.

Picked on March 25th @ $49.50
Change since picked +4.80
Stop Loss @ $52.50

April 8, 2001

It was a terrible week for NASDAQ (COMPX) stocks in general. However, PFGC, which is a major food producer that distributes its products to a variety of institutions, displayed some solid relative strength. PFGC will likely be one of a dwindling number of companies that will be able to show earnings growth when it reports its quarterly results on May 1st. Estimates are calling for profits of $0.33, which would be an increase of six pennies over the same quarter a year ago. PFGC may be on the verge of a major breakout. Momentum traders will probably be tempted to bid up shares once PFGC crosses over the $54.50 resistance. PFGC does have a habit of staging very quick one-day rallies. If PFGC does gap up 3 points or more on Monday's open, traders will probably get a better entry opportunity following a pullback in the first hour or so of trading. The MACD is signaling that more gains are on the horizon. The OBV is making a nice move and is foretelling more bullish moves to come. In the event of a pullback, look for PFGC to find support at its 10-DMA of $52.28. The 52-week high of $56.75 is the next resistance level following $54.50.

Picked on March 25th @ $49.50
Change since picked +4.00
Stop Loss @ $51.25