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 17, 2001

Curiously, TTC has seen a marked increase in volatility over the past two days that resulted in very little progress. Yesterday, TTC shot to a new high of $48.00 after moving above the resistance provided by the old 52-week high of $47.63. However, momentum traders appeared to be unimpressed and failed to extend the breakout today. Consequently, profit takers jumped in and knocked the stock back down into its consolidation range and did this with solid volume of 133,300 shares, which was more than 40,000 shares than the average daily volume. We have decided to raise our trailing stop to $44.88, just in case the selling continues and the stock violates the major support offered by the 50-DMA of $44.97. New positions placed near current levels might work out as long as TTC holds the first support level of $45.88. Momentum traders might want to wait for TTC to establish a new high above $48.00, accompanied by first hour trading volume exceeding 30,000 shares, before going long. The RSI did not signal an overbought condition, despite yesterday's solid rally. Therefore, this indicator suggests that TTC does have room to rally again.

Picked April 29th @ $46.25
Change since picked -0.05
Stop Loss @ $44.88

May 15, 2001

Last week saw some surprisingly strong retail numbers that suggest that consumer confidence is rising. This has to be good news for Toro, as the company enters it busiest season for selling lawn and gardening equipment. TTC's modest advance today was accompanied by volume that was a little better than last week's anemic 20,000 to 30,000 average. Perhaps TTC is on the verge of finally breaking out of its very narrow trading range between $45.88 and $47.00. A rally above $47.00, accompanied by midday volume exceeding 30,000 shares, may provide the next good entry signal. If this occurs, TTC might find resistance at its 52-week high of $47.65. Hopefully, the rally will come soon because the MACD is threatening to issue a sell signal. On the plus side is the RSI, which continues to indicate that there is plenty of rally room before the stock would be considered to be overbought.

Picked April 29th @ $46.25
Change since picked +0.25
Stop Loss @ $43.50

May 13, 2001

TTC saw more of the range bound trading that has been typical of the last six sessions. TTC is stuck in a tight flag pattern between $45.88 and $47.00. The company does possess some positive fundamentals that may eventually bring the bulls back. TTC trades with a very low P/E of 13.58. The firm is expected to post very solid profits of $3.92 a share when its fiscal year ends in October. Clearly, TTC offers shareholders some decent value for their investment. A round of selling in the broader market, especially among stocks that are trading with substantially higher P/E's, may drive investors back to the relatively "safer" stocks like TTC. Volume was very light last week (Friday's volume was only 25,800 shares) and one gets the feeling that TTC may be ready to pop on some greater volume. The MACD and the Money Flow are both positive, which could lead one to believe that the breakout will be to the upside. Therefore, traders may want to go long if TTC can trade above $47.00 and accomplish this move with midday volume exceeding 50,000 shares.

Picked April 29th @ $46.25
Change since picked -0.26
Stop Loss @ $43.50