SPX Corporation is a global provider of industrial products and services, technical products and systems, service solutions and vehicle components. For the fiscal year ended 12/31/00, net sales fell 1% to $2.68B. Net income before extra. item rose 84% to $198.3M. Revenues reflect lower sales of technical products and systems. Net income reflects a $98M gain on the issuance of Inrange stock, lower interest expense and lower S/G/A costs.

April 12, 2001

SPX produces automotive specialty service tools and equipment for franchised and independent vehicle dealers. After a complete makeover in 1996, the company revamped its business intent from being merely a supplier of automotive products to providing integrated vehicle service solutions. From this period, annual earnings for the company grew sharply, gaining 24% for each of the past five years. Although SPX has fallen significantly from its all time highs, the company has never declared a stock split, though we expect one could be forthcoming given its high stock price. We also like the fact that the stock is coming off a sharp “V” bottom formation, which managed to take out the intermediate high of $95.70 in today’s session. The technical indicators also paint a bullish picture, with a extended crossover in the stochastic and the MACD issuing a mid-week buy signal. So, bearing all this in mind, should shares continue to show upside strength in the week ahead, we’ll look for resistance to occur at the 50-dma of $98.06, followed by a stiffer challenge at the century mark. Support will come at the $95 mark. Look to time entries when SPW bounces off support or breaks above the 50-dma on volume of at least 240,000 shares traded by midday. We’ll set our initial stop at $90 to minimize our downside risk.

Picked on April 12th@ $96.31
Change since picked 0.00
Stop Loss @ $90.00

April 22, 2001

SPW hit our trailing stop of $98 on Friday, so we exit here with a small profit. SPW had been coming off a “V” bottom and ran into resistance at its long term down trend line. We may revisit this play again soon, as it is continues to be a good stock to trade off support levels.

Picked on April 12 @ $96.31
Profit/Loss +1.69 (2%) (Stopped Friday @ $98.00)
Best Profit +3.78 (4%)