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

April 12, 2001

Stericycle, Inc. sold off on Wednesday despite CEO, Mark Miller, saying on CNBC that he expected double-digit growth for the coming year. Shares of SRCL fell to an intra-day low of $43.95 following the announcement. We were stopped out at $44.70m so we are dropping SRCL tonight.

Picked on April 5th @ $46.00
Profit/Loss = -1.30 (-3%) (Stopped Wednesday at $44.70)
Best Profit = +3.10 (+7%)

April 10, 2001

Stericycle closed above resistance on Monday following eight sessions of sideways trading. Shares of SRCL traded to an intra-day high of $47.40 just before the closing bell. On Tuesday, the stock hit an all-time high of $49.10 before pulling back to close at $47.45 on volume of 329,000 shares. SRCL has regained some of its momentum, but the volume is still relatively light compared to the volume at the end of March. The company is expected to announce earnings on May 1st after the bell, so the volume may pick up very soon. In the meantime, SRCL has light support at Tuesday’s intra-day low of $47.10 with stronger support at $45.94, the 5-dma. Resistance is now at Tuesday’s intra-day high of $49.10 and then the $50 mark. Consider opening new positions on a bounce off of $47.10 or a breakout above $49.10 on volume greater than 100,000 shares by noon. We are bumping our stops up to $44.70 to protect additional capital.

Picked on April 5th @ $46.00
Change since picked +1.45
Stop Loss @ $44.70

April 8, 2001

Stericycle, Inc. continues to consolidate in the $41.50-$46.50 range on average volume. On Friday, shares of SRCL hit an intra-day high of $46.38 before pulling back to a close of $45 on volume of 198,000 shares. The stock has failed to break out of its ascending triangle three times in the last week and daily volume has been trending lower. SRCL may be trapped in the $41.50-$46.50 range until the volume picks up. The earnings report expected on May 1st after the bell may provide a catalyst. In addition, as the stock bases, its OBV has gone to the moon, which indicates that volume is growing on the buy side. The company has enough shares for a 3:2 split with 30 million shares authorized and 15.3 million shares outstanding so we may also get a split announcement with the earnings release. For now, support is Friday’s intra-day low of $44.63 with additional support at $44.13, the 10-dma. Resistance is Thursday’s intra-day high of $46.50 and then the all-time high of $47. Look for a bounce off of $44.63 or a move above $46.50 on midday volume of at least 125,000 shares before opening new positions. We are keeping our stops at $41.50 as downside protection.

Picked on April 5th @ $46.00
Change since picked –1.00
Stop Loss @ $41.50