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 22, 2001

PFGC tried desperately to breakout all last week. Impatient traders finally tired of waiting for the next move higher, and ended up selling PFGC on Friday. Granted, we did achieve a decent profit with this play, but we sure would have liked to see a strong rally ahead of the split on April 30th. PFGC will likely find support right around its 50-DMA of $49.31.

Picked on March 25th @ $49.50
Profit/Loss +3.00 (6%) (Stopped Friday @ $52.50)
Best Profit +5.30 (11%)