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 21, 2000

Philip Morris is having an impressive run. The stock has moved up 29% in the last month despite a generally weak market. On Wednesday, shares of MO hit a new 52-week high of $44.50 before pulling back to a close of $44.13 on volume of 11.4 million shares. The stock retested support at the 5-dma on Thursday but it rebounded later to close even on the session. MO has a very nice chart pattern, trending up on the 5-dma with increasing volume, so MO could be ready to challenge it all-time highs. In the meantime, support is now up to Tuesday’s intra-day high of $43.31 with stronger support at the 5-dma, currently at $42.56. Resistance is Thursday’s intra-day high of $44.50 and then the 2/5/99 intra-day high of $47.50. Traders should be looking for entry points on a bounce off of $43.31 or a move above $44.50 on volume greater than 3.5 million shares by midday. We have moved our stops up to $42 to protect profits.

Picked on October 26th @ $36.00
Change since picked +8.13
Stop Loss @ $42.00

December 19, 2000

Tobacco and consumer product conglomerate Philip Morris gapped up on Tuesday after announcing a $0.14 per pack price increase on cigarettes. The stock traded to new 52-week high of $43.31 on volume of 9.57 million shares. Currently, MO has solid momentum and it could continue to move higher as investors return to safety. Going forward, support is now up to Tuesday’s intra-day low of $41.69 with stronger support at $41.31, the 5-dma. Resistance has moved up to the 2/10/99 intra-day high of $44.13 and then the 2/8/99 intra-day high of $46.31. Traders may consider a bounce off of $41.69 or a move above $44.13 on midday volume of at least 3.5 million shares as possible entry points. We have moved our stops up to $41 to capture additional profits.

Picked on October 26th @ $36.00
Change since picked +7.06
Stop Loss @ $41.00

December 17, 2000

Philip Morris is a leading supplier of tobacco and consumer products. On Friday, shares of MO traded to a 52-week high of $41.81 before reversing directions later in the day. The stock was hit with a round of profit taking and an earnings warning from Clorox (CLX) didn't help the sector much. MO closed on its intra-day low of $40.06 on heavy volume of 16.1 million shares, twice the average daily volume. However, this may be related to triple witching and the large open interest in the December $40 calls and puts, pinning the stock at $40. If this indeed was the case, MO may resume its upward trend on Monday. For now, support is now the 10-dma at $39.44 with additional support at $39.19, the December 13th intra-day low. Resistance has come down to Friday's intra-day high of $41.81 and then the 6/10/99 intra-day high of $42.50. Traders should be looking for entry points on a bounce off of $39.44 or a move above $41.81 on midday volume of at least 3.5 million shares. We are leaving our stops at $39 to lock in a gain.

Picked on October 26th @ $36.00
Change since picked +4.19
Stop Loss @ $39.00