EQT is an integrated energy company, with emphasis on Appalachian area natural gas-supply, natural-gas transmission and distribution, and energy-management services for customers throughout the U.S. For the FY ended12/00, revenues rose 59% to $1.65B. Net income rose 54% to $106.2M. Revenues reflect the acquisition of Statoil%s Appalachian properties & higher effective commodity prices. Earnings were partially offset by higher maintenance costs.

March 27, 2001

Equitable Resources supplies and distributes natural gas in the Appalachian region. The company also provides energy-management services throughout the United States. Shares of EQT ran into major resistance in October after two years of solid performance. Since then, EQT has been stuck in the $56-$66 range. On Tuesday, the stock broke out to an all-time high of $67.75 and closed above $66 following six failed attempts in the past two weeks. After five months of consolidation, we believe that EQT could make a substantial move upward as we move closer to earnings season. We are also looking for a possible stock split with EQT?s April earnings release or out of its Annual Shareholder meeting on May 17th. The company currently has enough shares for a split with 80 million shares authorized and 37.26 million shares outstanding and the stock is trading within historic split range. EQT announced a 3:2 split in 1993 when the stock was trading in the $35-$40 range. Going forward, EQT has support at Tuesday?s intra-day low of $65.87 with stronger support at $64.70, Monday?s intra-day low. There is resistance at $67.75 and then the $70 mark. The stock is being added to the S Midcap 400 after Friday?s close. The news was announced after the bell on Tuesday so we may see a bit of a pop on Wednesday and a bit of sell-off next week. Traders may consider starting new plays on a bounce off of $65.87 or a breakout above $67.75 on volume greater than 80,000 shares by noon. We plan to set stops at $63.40 to limit potential losses.

Picked on March 27th @ $67.20
Change since picked +0.00
Stop Loss @ $63.40

April 19, 2001

Equitable Resources, Inc. began to sell off heading into its earnings announcement on Friday morning. On Wednesday, shares of EQT traded to an intra-day low of $75 before bouncing back to a close of $76.80 on volume of 370,000 shares. We were stopped out at $75, so we are dropping EQT tonight.

Picked on March 27th @ $67.20
Profit/Loss = + 7.80 (+12%) (Stopped Wednesday @ $75.00)
Best Profit = +10.30 (+15%)

April 17, 2001

Equitable Resources continues to hit new highs. On Tuesday, A.G. Edwards & Sons lowered its rating on EQT to ?maintain? from ?accumulate? based on valuation. However, Prudential Securities raised its first-quarter earnings per share estimate on Equitable Resources Inc. to $1.90 from $1.70 and the price target on EQT to $95 from $93, citing stronger natural gas production and prices. The stock responded by closing at an all-time high of $77.50 on volume of 205,000 shares. EQT is breaking out on heavy volume so the stock may trade even higher in front of the earnings release, expected on Friday before the bell. Until then, EQT has support at Monday?s intra-day high of $76.90 with stronger support at $75.79, the 5-dma. EQT closed at an all-time high on Tuesday so new resistance may show up at $79 or $80. Look for a bounce off of $76.90 or a breakout above $79 on midday volume greater than 100,000 shares before starting new plays. We have moved our stops up to $75.00, and we plan to exit no later than Thursday.

Picked on March 27th @ $67.20
Change since picked +10.30
Stop Loss @ $75.00

April 12, 2001

Equitable Resources has cooled off over the past two sessions after hitting an all-time high of $75.63 earlier in the week. On Thursday, shares of EQT fell to an intra-day low of $73.95 before bouncing back to close at $74.91 on volume of 138,000 shares. The energy sector has lost some of its momentum and EQT was ripe for profit taking so we are not surprised to see it take a step back. However, the stock remains in a firm upward trend so it could break out to new highs as we approach its earnings release on April 20th before the bell. From a technical standpoint, EQT has support at Thursday?s intra-day low of $73.95 with additional support at $72.47, the 10-dma. Resistance has come in at the all-time high of $75.63 and then possibly $77 or $78. Traders may consider starting new plays on a bounce off of $73.95 or a breakout above $75.63 on volume of at least 100,000 shares by noon. We are keeping our stops at $72.25, just under the 10-dma.

Picked on March 27th @ $67.20
Change since picked +7.71
Stop Loss @ $72.25