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 21, 2000

On Wednesday, in the face of a full-blown twin-market sell-off, XL gapped down and tested its support at the 50-dma at $76.92. This major moving average proved to be support for the stock, and on Thursday, the stock gained $4 in value. XL Capital is an insurance and financial service company based in Bermuda. Thursday's impressive gains came with volume of 624,000 shares, which roughly 100,000 above its three-month average. In addition, the stock also burst through three levels of resistance during today's ascent. Now the former resistance levels will act as support at the 10-dma of $81.72 and below that the 20-dma of $80.77. The stock will probably encounter some resistance at the two areas of recent consolidation at $84.00 and $86.00. If you are considering opening a new play on XL, it might be wise to coordinate your entry with a rally in the Dow Jones Industrial Average (INDU) with leadership coming from the PHLX Banking Index (BKX.X) and the S&P Insurance Index (IUX.X). We will keep our protective stop loss order at $75.38.

Picked on December 3rd @ $80.25
Change since picked +2.06
Stop Loss @ $75.35

December 19, 2000

On Tuesday, XL Capital followed the lead of the major indices and closed down for the day. The stock actually gapped up at the open but that burst of enthusiasm was short lived. The stock quickly changed direction and headed south. The good news is that the volume was fairly light for the Bermuda-based financial services company -- only 411,000 shares traded today, which represents a 31% decline in trading volume compared to the average of 540,000 shares. XL will now have to start the climb back up where it will likely encounter resistance at the 20-dma at $80.45 and then the 10-dma at $82.00. Should the stock drift lower, look for support to soften the drop at $79 and $78 which are former areas of consolidation and then at the 50-dma at $76.80. Watch the broad markets for confirmation before engaging in a new play. Continue to monitor 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 -1.19
Stop Loss @ $75.38

December 17, 2000

Bermuda based insurance and financial services company XL Capital finished the week down by 8-percent. The axiom, "the market giveth and the market taketh away" was proven true once again this week. The stock has now given back all the gains that it had posted the first week of December. The across-the-board selling hasn't helped matters at all. We will need a broad market rally to instill some serious interest back into this stock. Earnings accompanied by a possible split are still forth coming in the month of January. Should the company announce a split, it will be the first in its history. The company has almost a billion shares authorized and only 127 million shares outstanding, so available shares is not the issue here. On Friday, the stock fell on volume of 461,000 shares, slightly below the 3-month average of 540K. The technical perspective shows support at the 20-dma at $80.17 and the 50-dma at $76.62. The 20-dma has held the stock for the past three trading sessions. Resistance is at the 10-dma at $82.12. Watch the broad markets for confirmation before engaging in a new play. Continue to monitor 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 +0.44
Stop Loss @ $75.38