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

May 1, 2001

McCormick lost all means of support this week. On Tuesday, MKC fell to an intra-day low of $37.85 on heavy volume of 541,000 shares. We were stopped out at $38.75, so we are dropping MKC tonight.

Picked on March 29th @ $41.43
Profit/Loss = -2.68 (-6%) (Stopped @ Tuesday @ $38.75)
Best Profit = +1.51 (+4%)

April 29, 2001

McCormick & Company is gaining upward momentum following two weeks of selling pressure. On Friday, shares of MKC hit an intra-day high of $41.40 before pulling back to a close of $41.04 on light volume of 91,800 shares. The stock is starting to build a short-term upward trend after testing the low end of its trading range at $40. However, the volume remains light so MKC may continue to trade in the $40-$43 range until the volume picks up. From a technical standpoint, MKC has support at Friday’s intra-day low of $40.80 with additional support at $40.25, Wednesday’s intra-day low. Resistance is the 20-dma at $41.56 and then the April 18th intra-day high of $42. Traders may consider starting new plays on a bounce off of $40.80 or a move above $41.56 on volume greater than 75,000 shares by noon. Our stops are holding steady at $38.75.

Picked on March 29th @ $41.43
Change since picked –0.39
Stop Loss @ $38.75