PFGC is engaged in the marketing, processing and sale of food and food-related products to restaurants, hotels, cafeterias, schools, hospitals and other businesses and institutions. For the 39 weeks ended 9/30/00, net salesincreased 28% to $1.93B. Net income rose 42% to $18.9M. Revenues benefitted from acquisitions and increased sales in existing operations. Net income also reflects the absence of a $3.8M nonrecurring merger expense.

December 17, 2000

People may not be buying personal computers nearly as much these days but hard landing or not; they are still eating just as much. PFGC is a processor and supplier of a variety of food products to multiple institutions including restaurants, hospitals and schools. PFGC's share price is plowing into new highs, which makes the stock a split candidate. A relatively low P/E of 28.11, combined with expected earnings growth in the low 20% area for the past year and for next year has attracted investors. PFGC established a new all time high of $49.88 on Friday. This price should provide mild resistance on Monday. PFGC completed a secondary offering last week at $41.00. This price should provide major long-term support. Friday's opening price was $46.75, which rests upon the short-term trend line and should provide support. The MACD recently turned positive and is rising. Money Flow is on fire, with investors fleeing from tech stocks and putting money into reliable, fundamentally sound stocks. The RSI may be indicating the start of an overbought condition. However, the last time the RSI was at current levels, it hung at overbought levels for a while before the stock started to pull back.

Picked on December 17th @ $49.75
Change since picked +0.00
Stop Loss @ $43.00

December 21, 2000

Performance Food is a major supplier of food products and services to the food service industry. The company's business is mostly immune from an economic slowdown because demand for food is constant. PFGC also sports an excellent growth rate. The company is expected to post a profit increase of more than 20% next year over expected profits of a $1.49 this year. PFGC has enjoyed a solid rally since mid-October. This move included a successful test of the stock's 50-DMA in mid-November. PFGC has pulled back a little from its all-time high of $53.50, which was established on Tuesday. The stock is currently testing its short term up trend line. Therefore, today's low of $48.38 should provide the short-term support. The current decline may be attributed to a short-term overbought condition that was indicated by the RSI. However, this overbought condition has subsequently been relieved. A very strong Money Flow and OBV points to a possible test of the all time high in the coming trading sessions.

Picked on December 17th @ $49.75
Change since picked -1.00
Stop Loss @ $43.00

December 19, 2000

We are looking for strong performers in sectors that are avoiding the pressure of the bear market, which is one reason we've added food service provider PFGC to our current play list. Let's face it, the market for food is about as recession proof as a market can get. With that said, there is still a lot of money out there, and it seems to be flowing into "safe" stocks. PFGC established a new all-time high this morning at $53.50. However, late selling pressure took away the positive advance. On a positive note, the recent stair-step pattern held because PFGC stayed comfortably above yesterday's low of $48.50. This price should provide good support because it is the price from which the stock broke from a double top. What's more, the up trend is clearly intact, the MACD continues to be positive, and OBV and Money Flow are very solid. Any market bounce is likely to see more cash flow into PFGC. This stock is providing one of the few options for momentum investors, who have had to wean themselves off technology stocks.

Picked on December 17th @ $49.75
Change since picked +1.88
Stop Loss @ $43.00