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 10, 2000

Sysco Corporation is the largest supplier of food products in North America. The stock has been stuck in the $54-$58 range for the last six sessions. On Friday, shares of SYY traded to an intra-day low of $54.81 before bouncing back to close at $55.88 on volume of 823,000 shares. Hopefully, SYY will be able to break out of its trading range as we move closer to the 2:1 split, payable on December 15th. Until then, support is the 10-dma at $55.25 with additional support at the 20-dma, now up to $54.50. Resistance remains steady at Thursday’s intra-day high of $56.31 and then $57.69, the all-time high. Traders may consider opening new positions on a bounce off of $55.25 or a move above $56.31 on volume greater than 500,000 shares by midday. Our stops are holding at $49.50 to limit losses. We will exit this play prior to the December 15th payable date.

Picked on November 9th @ $53.94
Change since picked +1.69
Stop Loss @ $49.50

December 14, 2000

Food distributor Sysco Corporation came back to life after the company said that it expected fiscal second-quarter earnings to rise at least 25% compared with the year-ago period and that earnings per share for the quarter would be in the 39 cents to 41 cents range. After the bell on Wednesday, SYY announced that it had acquired Albert M. Briggs Company, a specialty meat supplier located in Washington, D.C. On Thursday, shares of SYY traded as high as $55.63 before pulling back to close at $55.13 on heavy volume of 1.5 million shares. The stock has been regaining its momentum going into the 2:1 split, payable on Friday after the bell. SYY closed above its 5,10, and 20-dma’s, so we have decided to keep this play for one more day. From a technical perspective, support is now the 20-dma at $54.50 with additional support at Tuesday’s intra-day low of $52. There is resistance at Thursday’s high of $55.63 and then $57.19, the December 5th intra-day high. Day-traders may consider entry points on a bounce off of $54.50 or a move above $55.63 on midday volume of at least 500,000 shares. We are using trailing stops, starting at $49.50, and we plan to exit before Friday’s close.

Picked on November 9th @ $53.94
Change since picked +1.19
Stop Loss @ $49.50

December 12, 2000

Food product distributor Sysco Corporation has been under pressure over the past three sessions following the completion of the North Douglas Distribution acquisition. On Monday, shares of SYY fell to an intra-day low of $53.13 on volume of 1.16 million shares. The stock closed below the 20-dma for the first time since October 11th, breaking the upward trend. Hopefully, the stock will be able to recover, as we are now just three days away from the 2:1 split, payable on December 15th. In the meantime, support has come down to Tuesday’s intra-day low of $52 with stronger support at $50.94, the 50-dma. Resistance has moved down to the 20-dma at $54.38 and then $55, the 10-dma. A bounce off of $52 or a move above $54.38 on volume greater than 500,000 shares by midday may be possible entry points. We are keeping our stops at $49.50 and we plan to exit no later than Thursday.

Picked on November 9th @ $53.94
Change since picked –1.44
Stop Loss @ $49.50