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 19, 2001

McCormick & Company made a nice recovery on Thursday. Shares of MKC hit an intra-day low of $40.06 early in the session. However, the stock bounced back to a close of $41.69 after trading through its 50-dma at $40.33. MKC has made four consecutive lower lows and it is now in a short-term downward trend. On the positive side, the 50-dma has provided a springboard for the stock over the past 6 months so MKC may be ready for a rally. Going forward, there is support at Wednesday’s intra-day low of $40.70 with stronger support at $40.33, the 50-dma. Resistance is the 10-dma at $41.87 and then the April 10th intra-day high of $42.50. Look for a bounce off of $40.70 or a move above $41.87 on midday volume greater than 75,000 shares before opening new positions. We are leaving our stops at $38.75 as downside protection.

Picked on March 29th @ $41.43
Change since picked +0.26
Stop Loss @ $38.75

April 17, 2001

McCormick has been struggling over the past five sessions. On Tuesday, shares of MKC traded to an intra-day low of $41.05 before bouncing back to a close of $41.30 on heavy volume of 249,000 shares. The stock closed below its 20-dma on heavy volume and MKC is starting to form a downward trend. However, MKC seems to find a bottom at $41 so the stock may be able to stay in its $41-$42 trading range as the market searches for direction. For now, support is Tuesday’s intra-day low of $41.05 with additional support at $40.65, the March 29th intra-day low. Resistance is the 10-dma at $41.99 and then the April 10th intra-day high of $42.50. Traders may consider entry points on a bounce off of $41.05 or a move above $41.99 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 –0.03
Stop Loss @ $38.75

April 12, 2001

MKC has been selling off as investors begin to rotate out of safety and back into tech issues. On Thursday, shares of MKC traded to an intra-day low of $41.35 before recovering late in the session. The stock ended the day at $41.70 on light volume of 93,800 shares. MKC has made three consecutive lower highs on less-than-average volume and MKC closed below the 10-dma for the first time since March 23rd. On the positive side, the stock was able to bounce off of the 20-dma in the past two sessions. Going forward, support is the 20-dma at $41.27 with stronger support at $40.95, Wednesday’s intra-day low. Resistance has fallen to the 10-dma at $42.06 and then Tuesday’s intra-day high of $42.50. A bounce off of $41.27 or a move above $42.06 on midday volume greater than 75,000 shares may be possible entry points. Our stops remain at $38.75 as downside protection.

Picked on March 29th @ $41.43
Change since picked +0.27
Stop Loss @ $38.75