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

January 4, 2001

The Fed Funds rate cut hurt shares of Philip Morris on Wednesday. The stock hit an intra-day low of $42 on volume of 19.98 million shares. Our stops were triggered at $44, so after nine weeks on our list, we are dropping MO with a nice profit.

Picked on October 26th @ $36.00
Profit/Loss = + 8.00 (+22%) (Stopped out Wednesday @ $44.00)
Best Profit = +10.50 (+29%)

January 3, 2001

Hit stop, write up to follow.

January 2, 2001

Tobacco and consumer product conglomerate Philip Morris hit a new 52-week high on Tuesday. Shares of MO traded as high as $46.50 before pulling back to a close of $46.19 on volume of 10.7 million shares. The move is noteworthy because the stock is moving to new highs in a very weak market. From a technical perspective, support is the December 27th intra-day high of $45.50 with stronger support at $44.94, the 5-dma. Resistance has moved up to Tuesday’s intra-day high of $46.50 and then $47.50, the 2/5/99 intra-day high. Traders may consider a bounce off of $45.50 or a breakout above $46.50 on midday volume of at least 4 million shares as potential entry points. We have moved our stops up to $44 to protect additional gains.

Picked on October 26th @ $36.00
Change since picked +10.19
Stop Loss @ $44.00

December 31, 2000

Philip Morris has been under some pressure over the past two sessions. On Friday, shares of the tobacco and consumer product conglomerate closed at its intra-day low of $44 on volume of 5.05 million shares. MO closed below the 5-dma for the first time since December 11th, so we may need to re-test support at the 10-dma before it moves higher. Going forward, MO has support at the 10-dma, now up to $43.44, with additional support at $43.31, the December 19th intra-day high. Resistance remains at Wednesday’s intra-day high of $45.50 and then $47.50, the 2/5/99 intra-day high. Traders should be looking for a bounce off of $43.44 or a move above $45.50 on midday volume of at least 4 million shares before starting new plays. We are keeping our stops at $43 to lock in profits.

Picked on October 26th @ $36.00
Change since picked +8.00
Stop Loss @ $43.00