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 19, 2001

If you used PFGC as your only window into the market, you would think we have entered a lackluster period reminiscent of late summer doldrums. In reality, all of the action following Greenspan's surprise rate cut has been in the technology and financial sectors. On the plus side, we have seen virtually no rotation out of PFGC into these "hot" sectors. This fact is encouraging and we still believe that PFGC has an excellent chance to stage a nice rally heading into their earnings report and 2:1 split at the end of the month. PFGC will probably offer traders a nice opportunity once it moves above the $54.50 resistance. This potential move will be even more enticing to traders if it occurs with midday volume of more than 80,000 shares tomorrow.

Picked on March 25th @ $49.50
Change since picked +3.96
Stop Loss @ $52.50

April 17, 2001

PFGC has been uncharacteristically calm for the past two weeks. That said, look for PFGC to possibly start moving higher as it approaches its 2:1 split distribution date of April 30th. PFGC owns one of the better looking charts on the NASDAQ (COMPX). The impressive performance of this index today in the face of potentially disastrous news from the technology front may create some encouragement from the momentum investing crowd. Some of this cash should flow into PFGC due to the pending split and the stock's strong technical picture. The trigger for a strong move is still a rally through the $54.50 resistance. Trading above this resistance may prove to be an excellent entry point, especially if it occurs with volume of more than 80,000 shares by midday. The MACD is still on the rise. OBV and Money Flow are both positive, but just like the stock, seem to be moving sideways.

Picked on March 25th @ $49.50
Change since picked +4.56
Stop Loss @ $52.50

April 12, 2001

PFGC held on to its value, and then some, during a week that was characterized by a monster technology rally. The highlight of the week for PFGC was Wednesday's split announcement. The 2:1 split has a payable date of April 30th. Obviously, PFGC now moves from our Split Candidate list to our Split Run list. We fully expect PFGC to stage a nice rally starting Monday if the market can maintain its strength and the bulls broaden their focus to more than just technology stocks. However, the $54.50 level continues to offer PFGC some stubborn resistance. Look for PFGC to really start moving if it can get past this resistance on Monday and accomplish this feat with midday volume approaching 90,000 shares. You might want to wait to add to positions if PFGC gaps up to the next resistance level of $56.75 on Monday. In the event of a pullback, traders may still be comfortable adding to positions if PFGC can stay above the support offered by last week's low print of $53.00. Although the Money Flow pulled back a bit towards the end of last week, the MACD and OBV are both solid and suggest that there is another positive run in PFGC's future.

Picked on March 25th @ $49.50
Change since picked +4.41
Stop Loss @ $52.50