Sysco Corporation is engaged in the marketing and distribution of a wide range of food and related products to the foodservice industry. For the 13 weeks ended 9/30/00, sales increased 15% to $5.36B. Net income before accounting change increased 36% to $144M. Revenues reflect increased food prices and recent acquisitions. Earnings benefitted from increased margins and decreased interest expense.

December 3, 2000

Sysco Corporation, the #1 North American supplier of food products, continued to move lower on Friday. Shares of SYY fell below the 10-dma, hitting an intra-day low of $53.94 on heavy volume of 1.37 million shares. However, the stock did manage to stay above the 20-dma, which has been a key support level over the past three weeks. Hopefully, SYY will be able to bounce from here, as we are now just 10 trading days away from the 2:1 split payable on December 15. In the meantime, support is the 20-dma at $53.69 with stronger support at $52.75, the November 27 intra-day low. Resistance remains steady at Wednesday’s intra-day high of $56.50 and then the all-time high of $57.69. A bounce off of $53.69 or a move above $56.50 on midday volume of at least 500,000 shares may be possible entry points. We are keeping our stops at $49.50 to minimize downside risk.

December 7, 2000

Sysco has been regaining its momentum as investors rotate out of tech and into safety. On Thursday, shares of the North American food product distributor traded to an intra-day high of $56.31 before pulling back to close at $55.88 on average volume of 741,000 shares. Despite the recent consolidation, SYY has put in four consecutive higher lows, maintaining the upward trend. The action could also be setting up a split run, as we are now just one week away from the 2:1 split, payable on December 15. In the meantime, support has moved up to the 5-dma at $55.43 with stronger support at $54.38, the 20-dma. Resistance has come in at Thursday’s intra-day high of $56.31 and then $57.69, the all-time high. Traders should be looking for a bounce off of $55.43 or a move above $56.31 on midday volume of at least 500,000 shares before opening new positions. We are leaving our stops at $49.50 as downside protection.

Picked on November 9th @ $53.94
Change since picked +1.94
Stop Loss @ $49.50

December 5, 2000

North America's largest food product distributor, Sysco Corporation, spent the last two sessions consolidating after hitting an all-time high of $57.69 last week. On Tuesday, the stock traded to an intra-day high of $57.19 before pulling back to close at $55.13 on volume of 1.78 million shares, twice the daily average. Hopefully, SYY will be able to rally as we move closer to the 2:1 split, payable on December 15. Until then, support is the 20-dma at $54.13 with additional support at $52.75, the November 27 intra-day low. There is resistance at Monday's intra-day high of $56.94 and then $57.69, the all-time high. Traders may consider entry points on a bounce off of $54.13 or a move above $56.94 on volume greater than 500,000 shares by midday. Our stops remain at $49.50.