RKY, a holding Co. for Coors Brewing Co., produces, markets and sells high-quality malt-based beverages. For the 39 weeks ended 9/24/00, net sales increased 8% to $1.68B. Net income increased 22% to $97.7M. Revenues benefitted from unit volume increases, higher prices and a shift towards higher net product sales. Net income also reflects increased investment income, lower debt balances and reduced state tax rates.

December 10, 2000

Coors has increased its beverage sales to almost twice the industry average through an emphasis on marketing. Additionally, the company’s introduction of a new long neck bottle for its Original Coors has turned the tide of declining sales for that particular brand. On Friday, RKY gave back some of its gains achieved on Thursday in conjunction with its breakout move. However, this retracement may provide us with a good opportunity to purchase the stock before another breakout. Keep stops at $72 to protect against declines through support. On the upside, we’ll look for a close above Thursday’s all time high of $77.06 to signal additional entry points and conformation of another potential breakout. Further up, we’ll look for the $80 mark to present a much tougher challenge to the stock. Since RKY is in a consumer cyclical sector, shares have been getting a boost from a broader market decline. With this in mind, we’ll look for continued weakness in the Dow Jones Industrial Average (INDU) or the NASDAQ Composite Index (COMPX) to be a continued sign of strength for the stock.

Picked on December 7th @ $76.56
Change since picked –1.56
Stop Loss @ $72.00

December 14, 2000

Thanks to an increase in the number of adults entering their twenties, RKY is expected to see strong consumption patterns over the next few years. Although this should bode well for the stock over the long term, what we need now is short-term catalyst to get shares running. A stock split announcement would fit into this scenario nicely. However, we are still encouraged by RKY’s ability to retain a strong consolidation base in these volatile times. Currently, the $75 mark, braced by a 5-dma of $75.26 is supporting the share price intraday, which is certainly a bullish indication. The lower end of the consolidation range tells us that $74 will also provide the stock with further support. Taking into account RKY’s narrow range, we're maintaining our $72 stop loss on this play. Consider opening plays when good mid-day volume of 180,000 shares or better can follow a bounce from either of these levels. If a breakout to the upside occurs, then we’ll be looking for the stock to find its initial challenge at the all- time high of $77.06. Higher up, expect to see the $80 mark present the next level of opposition.

Picked on December 7th @ $76.56
Change since picked –1.06
Stop Loss @ $72.00

December 12, 2000

Thanks to its fast-growing brands Coors Light, Killian's and Zima, Adolph Coors is expected to boost annual earnings by 19 percent this year. RKY shares have performed very well throughout the presidential election uncertainty and have continued to oscillate around the $75 mark. At the moment, breaking out of this level appears to be the biggest challenge for the stock. However, we feel this base could prompt management to consider a stock split. With that said, we’ll continue to look for sharp bounces from the $75 mark to signal a breakout. An advance above initial resistance at the all time high of $77.06 could be that signal, when followed by volume of 400,000 or better. As for support, the $75 mark at mid-consolidation will be followed by another base at recent lows near $74. The 20-dma of $73.65 could bolster this level and present the last foothold ahead of our stop at $72.

Picked on December 7th @ $76.56
Change since picked –1.19
Stop Loss @ $72.00