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 10, 2001

Union Pacific rallied on Tuesday after its Chairman and CEO, Dick Davidson, said that he is comfortable with analysts' expectations due to a 12% volume increase in its coal business during the first quarter. Shares of UNP traded to an intra-day of $57.37 before pulling back to close at $57.00 on volume of 2.63 million shares. UNP broke a four-day losing streak on heavy volume, so the stock may challenge its recent highs as we approach the earnings announcement scheduled for April 20th. For now, UNP has support at the April 5th intra-day high of $56.50 with additional support at $56.14, the 5-dma. Resistance is the April 3rd intra-day high of $57.40 and then possibly $58 or $60. A bounce off of $56.50 or a move above $57.40 on midday volume of at least 600,000 shares may be possible entry points. Our stops remain at $54.50 as downside protection.

Picked on April 3rd @ $57.35
Change since picked –0.35
Stop Loss @ $54.50

April 8, 2001

Union Pacific Corporation closed below the 10-dma on Friday. Shares of UNP traded to an intra-day low of $55.72 as the market sold off. The stock ended the session at $55.95 on heavy volume of 2.04 million shares. UNP has made four consecutive lower highs on above-average volume and it closed below the 10-dma for the first time since March 23rd. The stock has been trading in the $55-$58 range for the past two weeks so UNP may need to form a handle and test the $55 mark before it moves higher. Going forward, UNP has support at Friday’s intra-day low of $55.72 with stronger support at $55.12, the March 28th intra-day low. Resistance is the 5-dma at $56.66 and then Wednesday’s intra-day high of $57.15. Consider entry points on a bounce off of $55.72 or a move above $57.25 on volume greater than 600,000 shares by noon. We are leaving our stops at $54.50 to limit potential losses.

Picked on April 3rd @ $57.35
Change since picked –1.40
Stop Loss @ $54.50