TTC designs, manufactures & markets professional turf maintenance equipment, irrigation systems, landscaping equipment, agricultural irrigation systems, and residential yard products. For the 3 months ended 2/2/01, net sales rose 1% to $283.5M. Net income rose 43% to $1.3M. Results reflect increased demand for landscape contractor mowing equipments, sales from two additional distributors, higher currency gains and increased royalty income.

April 29, 2001

Beautiful weather across the country is probably having people dreaming of barbecues and pool parties. However, spring and summer also bring another warm weather activity to mind, cutting the grass. This ties right into our new play, Toro. TTC is an excellent seasonal play, due to its huge line of lawn and gardening equipment. Additionally, Toro is a huge beneficiary of the boom in golf course construction. Toro's top of the line products serves to keep a multitude of golf courses across the country looking in tiptop shape. The company's fundamentals are also solid. Toro is expected to show profits of $2.29 this quarter when it reports earnings on May 23rd. Despite the company's solid earnings, it only trades at a trailing P/E of 13.21. Turning to the chart, TTC has been building a symmetrical triangle over the last two months and has just broken to the upside. Major support can be found at the 50-DMA of $43.94 (just above our initial stop of $43.50). TTC may accelerate once it surpasses the $47.00 resistance level. Traders might be interested in picking up this stock if it can make this move accompanied by midday volume of over 50,000 shares. The next resistance level after that is $47.65 (the all time high). The MACD just turned positive last week, which is a good sign that TTC is on the verge of making another foray into new high territory. The Money Flow and OBV are also both solid and the RSI has plenty of room before an overbought condition is signaled. We our placing our initial stop at $43.50 to lower our downside risk.

Picked April 29th @ $46.25
Change since picked +0.00
Stop Loss @ $43.50

May 10, 2001

Warm weather is making the grass grow, which means it is time for many to go out and buy some new lawn equipment. Toro is only too happy to supply homeowners with the necessary equipment to impeccably groom their backyards. That said, it has been a very slow week for the stock, as it develops a flag pattern between $45.88 and $46.97. The tight range has been accompanied by very low volume. In fact, today’s volume posted at only 28,100 shares traded. Still, we are counting to regroup and regain its momentum. To that end, look for TTC to make its next move when it trades through either side of the flag pattern boundaries, especially if the move is accompanied by midday volume exceeding 50,000 shares. If TTC trades above $47.00, it could continue to move until it finds resistance at the 52-week high of $47.65. If TTC can close above $47.65 tomorrow, it may signal a more substantial move for the stock next week. Some of TTC's technical indicators suggest that the next move will be to the upside. The MACD is still positive, the 50-DMA is rising and the RSI isn’t close to indicating an overbought condition.

Picked April 29th @ $46.25
Change since picked +0.45
Stop Loss @ $43.50

May 8, 2001

Shares of TTC opened just above the resistance of $46.84 but could not find any more buyers and subsequently pulled back. Today's volume of 28,700 shares was very light. Despite these facts, TTC may still be a compelling buy for many traders if it can move above $47.00 tomorrow accompanied by midday volume exceeding 50,000 shares. The stock is within shouting distance of its 52-week high of $47.65. Still, TTC trades at a very low P/E of 13.23 and the company is entering its busiest time of year. Therefore, there appears to be enough positive factors to entice buying. The technical picture is also good. TTC enjoys a steadily rising 50-DMA, which closed today at $44.56 and the stock has seen strong Money Flow for most of this year. The MACD is in positive territory and the RSI has some breathing room before indicating an overbought condition.

Picked April 29th @ $46.25
Change since picked +0.05
Stop Loss @ $43.50

May 6, 2001

TTC made some progress last week and could be on the verge of a nice breakout. There are a couple of compelling reasons why investors have been buying shares of this lawn and gardening equipment leader. TTC is obviously a seasonal play as we head into the warmer months. In addition, the stock is trading at a P/E of only 13.35, even though the company is expected to post year-end profits of $3.92/share in October. Technically speaking, TTC has been consolidating its February breakout by trading between the all-time high of $47.65 and the support offered by a rising 50-DMA, which is now located at $44.38. One possible entry point may present itself if TTC can move above Friday's high of $46.95. If TTC gaps up and finds resistance at the all-time high of $47.65 on Monday's open, it may pullback a bit in the early going, resulting in a better entry price. TTC could have a strong week if it can close in new high ground on volume exceeding 100,000 shares. The MACD and the Money Flow are two technical indicators that are suggesting that TTC may move higher over the next few days. We additionally are encouraged by the fact that the RSI is at a level that implies that TTC has room to mow before issuing an overbought signal.

Picked April 29th @ $46.25
Change since picked +0.46
Stop Loss @ $43.50