Philip Morris is a holding company whose principal subsidiaries are engaged in the manufacture and sale of various consumer products, including cigarettes, packaged and processed foods, and beverages. For the 9 months ended 9/30/00, revenues rose 3% to $60.94B. Net income rose 12% to $6.50B. Results reflect increased domestic tobacco revenues due to higher prices and improved product mix. Earnings benefitted from improved gross margins.

December 3, 2000

Philip Morris is a leading tobacco and consumer product conglomerate, controlling companies such as Kraft Foods and Miller Brewing Company. The stock spent all of Friday in negative territory on news that Miller Brewing plans to sell its Celis trademark and close the Celis brewery at the end of the year. Miller said it acquired a majority interest in Celis in 1995 and all remaining shares last April when the Celis family chose to sell its minority interest in the brewery to Miller. Profit taking in the consumer staples sector also contributed to the decline. Shares of MO hit an intra-day low of $37.13 before bouncing off the 10-dma to close at $37.63 on volume of 6.23 million shares. On the technical side, support is the 10-dma at $37 with stronger support at $36.50, the November 27 close. Resistance has come in at Friday’s intra-day high of $38.06 and then $38.75, Wednesday’s intra-day high. Traders may consider entry points on a bounce off of $37 or a move above $38.06 on volume greater than 4 million shares by midday. We are leaving our stops at $36.50 as we do not want to stick around if the stock slips back into its old trading range.

December 7, 2000

Philip Morris has been moving higher despite a minor setback for George W. Bush in the courtroom on Wednesday. On Thursday, shares of MO hit a 52-week high of $40 before pulling back to close at $39.69 on volume of 5.7 million shares. The stock is benefiting from sector rotation out of technology and into safety. Also helping the stock, Al Gore has been losing the majority of the court battles and he is running out of time. MO is moving in anticipation of a Bush victory. Until then, support is Wednesday’s intra-day high of $39.31 with additional support at the 5-dma, now up to 38.25. Resistance is now Thursday’s intra-day of $40 and then $42.50, the 6/10/99 intra-day high. Traders may consider entry points on a bounce off of $39.31 or a move above $40 on volume greater than 3.5 million shares. We have moved our stops up to $38 to lock in gains.

Picked on October 26th @ $36.00
Change since picked +3.69
Stop Loss @ $38.00

December 5, 2000

Leading tobacco and consumer product conglomerate Philip Morris gapped on Tuesday on the heels of a major Bush victory in Florida courts. The stock traded to an intra-day high of $38.94 on volume of 6.1 million shares. Hopefully, MO will be able to rally to a new 52-week high in the near future. In the meantime, support is the 5-dma at $38.13 with stronger support at 10-dma, currently at $37.31. Resistance has moved up to Tuesday's intra-day high of $38.94 and then the $40 mark. Traders should be looking for a bounce off of $38.13 or a move above $38.94 on midday volume of at least 4 million shares before starting new plays. Our stops remain at $36.50 to protect a small profit.