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 26, 2001

McCormick & Company is starting to make a recovery after hitting a 30-day low of $40 earlier this week. On Thursday, shares of MKC traded to an intra-day high of $41.63 before running into resistance at the 20-dma. The stock ended the session at $40.89 on volume of 135,000 shares. MKC has tested major support at the 50-dma and it has broken the downward trend with two higher lows. However, volume has been on the light side so MKC may be stuck in the $40-43 range until the volume picks up. The company is scheduled to appear at the Goldman Sachs Global Beverage, Food, and Tobacco Conference on May 9th, so we may see some better volume in the near future. For now, support is the 50-dma at $40.57 with stronger support at Wednesday’s intra-day low of $40.25. Resistance is the 10-dma at $41.12 and then Thursday’s intra-day high of $41.63. A bounce off of $40.57 or a move above $41.12 on midday volume of at least 75,000 shares may be possible entry points. We are leaving our stops at $38.75 to limit potential losses.

Picked on March 29th @ $41.43
Change since picked –0.54
Stop Loss @ $38.75

April 24, 2001

McCormick & Company showed some early signs of relief on Tuesday. Shares of MKC traded to an intra-day low of $40 before bouncing back to a close of $40.38 on volume of 227,000 shares, 77,000 increase to the 10-day average daily volume of 150,000. MKC has now made five consecutive lower highs and it is now in a firm downward trend. What’s more, the stock closed below the 50-dma for the first time since January 24th. The 50-dma has been a major source of support for MKC and the stock has not closed below the 50-dma for two straight sessions in the past six months. Still, MKC is holding the $40 mark, so it may be able to rally from here. From a technical standpoint, MKC has support at Tuesday’s intra-day low of $40 with additional support at $39.53, the March 26th intra-day low. Resistance has fallen to Tuesday’s intra-day high of $40.89 and then $41.42, the 10-dma. Traders may consider entry points on a bounce off of $40.00 or a move above $41.42 on volume greater than 75,000 shares by noon. Our stops remain at $38.75.

Picked on March 29th @ $41.43
Change since picked –1.05
Stop Loss @ $38.75

April 22, 2001

McCormick & Company continues to lose momentum as investors move money out of safety and into tech. On Friday, shares of MKC fell to an intra-day low of $40.51 before bouncing back to a close of $41.20 on light volume of 103,000 shares. The stock has formed a short-term downward trend on declining volume over the past two weeks. However, MKC is currently at the lower end of its trading range so the stock may remain in the $40-$42 range until the volume picks up. In the meantime, support remains at Wednesday’s intra-day low of $40.70 with stronger support at $40.41, the 50-dma. Resistance is holding steady at the 10-dma, now down to $41.74, and then the April 10th intra-day high of $42.50. A bounce off of $40.70 or a move above $41.74 on midday volume of at least 75,000 shares may be possible entry points. If tech falters again, you can be sure that money will again find its way back to safety plays such as MKC. We are keeping our stops at $38.75 to limit potential losses.

Picked on March 29th @ $41.43
Change since picked –0.23
Stop Loss @ $38.75