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 10, 2000

Philip Morris traded to a new 52-week high of $40.50 on Friday. Shares of the consumer product conglomerate rose on heavy volume of 8.53 million shares following news that the two Florida courts had ruled in favor of George W. Bush. Unfortunately, after the bell on Friday, Florida’s supreme court ordered a manual recount of all votes in Miami-Dade County, which was a victory for Al Gore. Shares of MO fell to $37.25 in after-hours trading so the stock could see some weakness on Monday. Going forward, support is the 5-dma at $38.94 with stronger support at $38.25, the 10-dma. Resistance has moved up to Friday’s intra-day high of $40.50 and then the 6/10/99 intra-day high of $42.50. Traders should be looking for a bounce off of $38.94 or a move above $40.50 on midday volume of at least 3.5 million shares before starting new plays. Our stops remain at $38 to protect recent gains.

Picked on October 26th @ $36.00
Change since picked +3.63
Stop Loss @ $38.00

December 14, 2000

Philip Morris is riding high on the heels of a definitive Bush victory. We finally have a President-Elect and MO, a leading tobacco and consumer product distributor, is responding because investors believe that Bush may ease up on the anti-tobacco crusade. On Thursday, shares of MO hit a new 52-week high of $41.75 on volume of 7.9 million shares. The stock is also benefiting from the continued rotation out of tech and into safety. Going forward, support has moved up to Wednesday’s intra-day high of $40.94 with stronger support at $39.94, the 5-dma. Resistance is now up to the 6/10/99 intra-day high of $42.50 and then the 2/10/99 intra-day high of $44.13. Traders may consider opening new positions on a bounce off of $40.94 or a move above $42.50 on volume of at least 3.5 million shares by midday. We have bumped our stops up to $39 to protect gains.

Picked on October 26th @ $36.00
Change since picked +5.50
Stop Loss @ $39.00

December 12, 2000

Consumer product conglomerate Philip Morris sold off on Monday after hitting a 52-week high last week. On Tuesday, shares of MO traded to an intra-day high of $39.88 on hopes of a ruling from the Florida Supreme Court. In election news, the vote recount in Miami-Dade County was stopped on Saturday morning, reversing the ruling from Friday evening. In other news, MO completed its acquisition of Nabisco Holdings (NA) on Monday and this also weighed on the stock. For now, support is the 10-dma at $38.67 with additional support at $38.25, Tuesday’s intra-day high. There is resistance at Tuesday’s intra-day high of $39.88 and then the 6/10/99 intra-day high of $42.50. Traders may consider entry points on a bounce off of $38.67 or a move above $40 on volume greater than 3.5 million shares by midday. We are keeping our stops at $38 to lock in profits.

Picked on October 26th @ $36.00
Change since picked +2.88
Stop Loss @ $38.00