Knight-Ridder is engaged in newspaper publishing, news and information services and graphics and photo services. KRI publishes 32 daily & 22 non-daily newspapers in 28 U.S. markets & maintains 45 associated Web sites. Forthe 3 months ended 3/01, revenues fell 3% to $735.4M. Net income applic. to Common fell 76% to $38M. Results reflect lower classified revenue due to reduced recruitment and autoadvertising, and the realized loss on Internet investments.

May 20, 2001

Knight Ridder, Inc. publishes 32 daily and 22 non-daily newspapers in 28 markets across the US. The company also runs 45 Web sites associated with its print publications. Shares of KRI have spent the last two months consolidating in the $52-$55 range after hitting a relative low of $50.20 on March 22nd. Over the past two weeks, the stock has quietly moved out of its trading range, followed by a breakout on three consecutive higher highs coupled with higher lows. We believe that KRI may be ready to challenge its all-time highs and we are also looking for a split announcement with the July 17th earnings release. The company currently has 250M authorized and 75 million shares issued so it has enough shares for a split. From a technical standpoint, KRI has support at Friday’s intra-day low of $55.61 with additional support at $55.23, the 10-dma. Resistance is the 100-dma at $56.30 and then the March 9th intra-day low of $57. Traders should look for entry points on a bounce off of $55.61 or a move above $57 on volume greater than 480,000 shares by noon. We plan to set stops at $54 to limit potential losses.

Picked on May 20th @ $56.01
Change since picked +0.00
Stop Loss @ $54.00

May 24, 2001

Knight Ridder, Inc. has been under pressure over the past two days. On Wednesday, Goldman Sachs cut its outlook for fiscal 2001 profits for KRI to $3.32 per share from $3.40 and reiterated its “underperform” rating on the stock. Following the news, shares of KRI traded to an intra-day low of $55.43 before closing at $56.02 on light volume of 235,000 shares. On Thursday, KRI dipped to an intra-day low of $55.43 on volume of 269,000 shares. The stock was able to close above the $56 mark but KRI may fall back into its old $54-$56 trading if the volume continues to decline. For now, support is the 10-dma at $55.86 with stronger support at $55.27, the 20-dma. Resistance has moved down to the 5-dma at $56.58 and then Wednesday’s intra-day high of $57.60. Look for entry points on a bounce off of $55.86 or a move above $56.58 on volume of at least 250,000 shares by noon. Our stops remain at $54.

Picked on May 20th @ $56.01
Change since picked +0.01
Stop Loss @ $54.00

May 22, 2001

Knight Ridder, Inc. released its business revenue data for April on Tuesday. Total advertising revenue was down 8.6% for the month and down 4.2% for the year to date. However, the news had a mild affect on the stock. Shares of KRI traded to an intra-day high of $58.65 before pulling back to a close of $57.78 on heavy volume of 792,000 shares. The stock is breaking out after two months of sideways trading so KRI may continue to move higher. Going forward, KRI has support Monday’s intra-day high of $56.75 with stronger support at $56.33, the 5-dma. Resistance has moved up to Tuesday’s intra-day high of $58.65 and then the March 6th intra-day low of $60.50. Consider entry points on a bounce off of $55.75 or a move above $58.65 on volume of at least 250,000 shares by noon. We are leaving our stops at $54 to limit potential losses.

Picked on May 20th @ $56.01
Change since picked +1.77
Stop Loss @ $54.00