PerkinElmer, Inc. is a global technology company which provides products and systems to the telecom, medical,pharmaceutical, chemical, semiconductor and photographic markets. For the FY ended 12/31/00, sales increased 24% to $1.70B. Net income from continuing operations totaled $86.1M, up from $28.4M. Revenues reflect increased sales volumes. Net income also reflects the absence of a $18M asset impairment charge and a higher gain on dispositions.

May 17, 2001

PKI is a global company that provides products and systems to the telecom, pharmaceutical, chemical, semiconductor, medical, aerospace and photographic industries. Although PKI trades on the NYSE, the stock exhibits a trading pattern similar to many of the leading technology stocks over on the NASDAQ. PKI fell from its all-time high of $121.00 to a double-bottom low of $42.55 in early April. Although there is plenty of overhead resistance, PKI is developing some positive technicals. The 50-DMA, closing today at $58.41, appears to be starting to turn back up. PKI broke out of a nice base today by taking out the $68.00 resistance. The Money Flow is also improving nicely and also appears to be breaking out. We also like the fact that the RSI still has upside potential before the stock would be considered overbought. There are a couple of scenarios that may prove to be good entry points. A pullback tomorrow that bounces near $68.00 might be one entry opportunity. Momentum traders might be interested in going long if PKI can trade above $70.50 tomorrow accompanied by first hour trading volume exceeding 150,000 shares. A little patience might be necessary if PKI gaps up to resistance at $72.94 on the open. If this happens, the stock might pull back a little during the day and offer traders a more advantageous entry price than the opening print. PKI will be splitting its shares 2:1 on June 1st.

Picked on May 17th @ $70.12
Change since picked +0.00
Stop Loss @ $67.00

May 24, 2001

PKI could not shake off the market's correction yesterday. It now appears as if the stock has lost some of the momentum that was initially generated from its recent breakout. The good news is that Wednesday's decline occurred on light volume of just over 400,000 shares followed by light volume today of only 210,000 shares. PKI usually enjoys average daily volume exceeding 500,000 shares. This fact that we have seen lower volume on down days is a good sign that there is very little conviction from sellers. Money Flow did slip a bit but is still relatively strong. The pullback did relieve the overbought pressure that was signaled by the RSI. IF PKI declines tomorrow, look for the stock to find major support at $67.84, which is the top of the old base. If PKI bounces off the initial support offered by the 10-DMA of $69.44, it may provide a good entry opportunity. The MACD is still positive, which is a good sign that PKI may be able to muster up another run higher towards resistance of $76.25.

Picked on May 17th @ $70.12
Change since picked +1.68
Stop Loss @ $67.00

May 22, 2001

PKI is moving right in step with this week's technology stock rally. The company's pending stock split, which has a scheduled payable date of June 1st, is probably contributing to the stock's solid move. If PKI experiences a pullback, it will most likely find support at $68.00 (the top of the old base). On the other hand, a continuation of this powerful move could eventually find major resistance at the 200-DMA of $85.19. If technology stocks can extend their rally for a seventh day tomorrow, look for PKI to offer momentum traders a potentially profitable opportunity to go long if the stock can trade through today's high print of $76.25. This potential trade would be more enticing if the move above $76.25 is accompanied by midday volume exceeding 260,000 shares. The Money Flow has been very good during this rally and the MACD is positive. As long as these technical indicators continue to go in the right direction, it would be reasonable to assume that PKI will continue to move higher. That said, a drop below the $72.00 support should raise one's caution flag.

Picked on May 17th @ $70.12
Change since picked +4.99
Stop Loss @ $67.00

May 20, 2001

PKI opened trading on Friday right were it closed on Thursday and then proceeded to head higher into Friday's close. PKI strengthened its line of digital imaging equipment on Friday by announcing the acquisition of Sonoran Scanners, which is a privately held company based in Tucson, Arizona. Sonoran’s proprietary Laser Direct Imaging and Computer-to-Plate technologies will add to PKI’s offerings. PKI appears to breaking out of a long base that is supported by the 20-DMA at $64.56 on the low side and was bounded by resistance just below $68.00. Now that PKI has moved out of this base, the top of the base should now offer support. This current rally may find some light resistance at $75.72. That said, the next tempting entry point could come Monday if PKI can trade through Friday's high of $73.19 with midday volume of over 300,000 shares. The MACD avoided issuing a sell signal last week and is now positive, suggesting that the rally could continue. The Money Flow is also quite strong and is additionally encouraging for bulls. Perhaps this rally can continue right up to PKI's June 1st 2:1 split payable date.

Picked on May 17th @ $70.12
Change since picked +2.70
Stop Loss @ $67.00