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| WWY - William Wrigley Jr. | Week Ended: 1/6/01 |
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| Price |
91.31 |
P/E Ratio |
33 |
52 Week High |
94.19 |
| Last Week |
+ 3.13 |
Earnings Date |
1/24/01 |
52 Week Low |
59.88 |
| Picked At |
96.06 |
Date Picked |
1/2/01 |
Sector |
Consumer/Non-Cyclical |
| Activity |
| Current |
91.31 |
Open |
89.44 |
Change |
1.81 |
| Low |
88.81 |
High |
92.50 |
Volume |
485,600 |
ZACKS | NEWS | PROFILE | HISTORICAL PRICES | OPTIONS | D-CHART |
| Company Description William Wrigley Jr., Co. manufactures and sells chewing gum under the Wrigley%s Spearmint, Doublemint, JuicyFruit, Big Red, Winterfresh, Freedent and Extra brand names.For the nine months ended 9/30/00, revenues rose 6% to $1.62B. Net income rose 7% to $250.6M. Revenues reflect higher worldwide shipments, a favorable mix and selected selling price increases in all regions. Net income reflectshigher gross margins.
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| Play Description January 2, 2001
William Wrigley Jr. is a leading manufacturer of chewing gum. The company makes a variety of popular chewing gum brands such as Juicy Fruit, Big Red, Freeden and Extra. Shares of WWY were trading in the $70-$85 range for most of last year. On September 21st, the stock traded to an intra-day low of $70.19, representing the low end of the range. Since then, WWY has been hot, breaking out to 52-week highs on rising average daily volume. On Tuesday, shares of WWY traded as high as $96.88 on 311,000 shares, which has us believing that the stock could be ready to challenge its all-time high of $100.25 set back in February 1999. We are also looking for a split announcement to come out of their next BoD meeting or with the earnings release on January 26th. Their last split came after a BoD when the stock was trading in the $80-$100 range. The company currently has enough shares for a split with 400 million shares authorized and 94 million shares outstanding. Going forward, support is the 5-dma at $94.75 with stronger support at the 10-dma, now up to $93.44. WWY has resistance at $97, just above Tuesday’s intra-day high and then the 7/10/98 close of $98.75. Traders may consider starting new plays on a bounce off of $94.75 or a breakout above $97 on volume of at least 150,000 shares by midday. We plan to set stops at $91 as downside protection.
Picked on January 1st @ $96.06
Change since picked +0.00
Stop Loss @ $91.00
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| Update January 4, 2001
William Wrigley Jr. did not fare well following the Fed’s surprise rate cut on Wednesday. Shares of WWY traded to an intra-day low of $91.31 on volume of 494,000 shares. The selling intensified during Thursday’s session, taking the stock down to an intra-day low of $87.88 on 724,000 shares. We were stopped out at $91 and we are dropping WWY tonight.
Picked on January 2nd @ $96.06
Profit/Loss = -5.06 (-5%) (Stopped out Thursday @ $91.00)
Best Profit = +0.63 (+1%)
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