XL operates in four underwriting segments: insurance,reinsurance, Lloyd%s Syndicated and financial services, and investment operations of the company. For the 9 months ended 9/30/00, total revenues increased 14% to $2.08B. Net income increased 23% to $505.7M. Results reflect higher netpremiums earned due to increased syndicate capacity. Net income reflects improved market condition in property & casualty businesses and decreased interest expenses.

December 10, 2000

On Friday, XL Capital rocketed to a new 52-week high on Friday on twice its normal trading volume. The new high was achieved on 1.2 million shares traded, well above the average of 513,000 shares. Although the company has never split its shares, we will pound the table in support of the company announcing its first ever stock split. With 999.99 million authorized shares and only 127.4 outstanding, the company has ample shares to affect a stock split. A likely time would be with earnings in January. We are very impressed with the stock’s strength, though we only have to look to the insurance index (IUX.X) and banking index (BKU.X) as conformation of the stock’s holding power. Looking at the chart, we now see support levels at the 5-dma at $82.33, the 10-dma at $80.75 and the 20-dma at $78.53. Resistance will now be Friday's high of $86.50. Look for more good volume and a bullish ascent to conquer initial resistance. Use a quick bounce off a support level as a possible entry point for a new play. We will keep you posted of any split announcements should they arise. We will stand pat with our stop loss order at $75.38.

Picked on December 3rd @ $80.25
Change since picked +5.94
Stop Loss @ $75.38

December 14, 2000

Last week the XL Capital wowed investors by bursting to new levels. This week has been a different story. On Wednesday, XL bounced off the 20-dma at $79.61 and held its ground. On Thursday, the stock headed south in the early morning and looked like it would break through support. However, by 10:30 am EST, the story changed and XL began to move higher. When the dust had settled, the stock only earned a fractional gain, but the volume was up 67 percent from the three-month average of 537,000. Support for XL now exists at the 20-dma at $79.92 and then the 50-dma at $76.58. Resistance can be found at the 10-dma at $82.08 and the 5-dma at $83.01. Special interest should be attributed to the PHLX Banking Index (BKX.X) and the S&P Insurance Index (IUX.X) when considering new plays. We will post our stop loss below support at $75.38.

Picked on December 3rd @ $80.25
Change since picked +0.88
Stop Loss @ $75.38

December 12, 2000

XL Capital appears to be taking a breather after last week's stellar performance. The company has been making a slow and steady ascent for the past 10 months and appears to have found a short-term ceiling at the $86.00 level. On Tuesday, the stock headed south right from the start of trading and never looked back. Fortunately, trading volume was light at 380,000 shares off from the three-month average of 528,000, so there wasn't much conviction. As we have noted in previous reports on XL, the company has never split its stock; nevertheless, the stock is trading at all-time high levels. Despite the pullback on Tuesday the stock managed to find some support at the 10-dma of $81.84. Below that, support looks good at the 20-dma at $79.36 and the 50-dma at $76.37. Upstairs, look for resistance at the 5-dma of $83.22 and then the recent 52-week high of $86.50. Keep watching the broad markets as well as the PHLX Banking Index (BKX.X) and the S&P Insurance Index (IUX.X) for leadership when considering new plays. We will post our stop loss below support at $75.38.

Picked on December 3rd @ $80.25
Change since picked +2.06
Stop Loss @ $75.38