American Standard manufactures high quality, brand name air conditioning systems, bathroom & kitchen fixtures and fittings and braking systems for vehicles. For the FY ended 12/31/00, revenues increased 6% to $7.6B. Net income from continuing ops. increased 20% to $316M. Revenues reflect higher air-conditioning sales due to share growth in equipment and expanded solutions and services sales. Earnings reflect a $57M gain on sale of business.

May 6, 2001

American Standard Companies is a global manufacturer of air conditioning systems, bathroom and kitchen fixtures, and vehicle control systems for trucks, buses, trailers and utility vehicles. Shares of ASD have been hitting new highs over the past four months following a major breakout from the $35-$50 range in January. The stock closed at an all-time high on Friday and we believe that ASD could continue to move higher. We are also looking for a split announcement with the July earnings report or out of the next BoD meeting. The company has enough shares for a split with 200 million shares authorized and 71 million shares outstanding. Going forward, ASD has support at Thursday’s intra-day high of $61.75 with stronger support at $60.33, the 10-dma. Resistance was taken out on Friday so new resistance may show up at $63 or $65. Look for a bounce off of $61.75 or a breakout above $63 on midday volume of at least 250,000 shares before starting new plays. We plan to place stops at $58.50 to limit potential losses.

Picked on May 6th @ $62.50
Change since picked +2.00
Stop Loss @ $58.50

May 10, 2001

American Standard hit an all-time high on Thursday. Shares of ASD traded as high as $63.68 before settling back to a close of $63.45 on volume of 357,000 shares. The stock remains in a firm upward trend as the auto sector regains its momentum following a brief round of profit taking. ASD has made two consecutive higher highs coupled with higher lows so ASD could be able to break out on a major volume surge. From a technical standpoint, support is the 5-dma at $62.67 with stronger support at $61.82, the 10-dma. Resistance has moved up to Thursday’s intra-day high of $63.68 and then possibly $64 or $65. Traders should be looking for entry points on a bounce off of $62.67 or a move above $63.68 on volume of at least 250,000 shares by noon. We are leaving our stops at $58.50 to limit potential losses.

Picked on May 6th @ $62.50
Change since picked +0.95
Stop Loss @ $58.50

May 8, 2001

Momentum carried American Standard Companies, Inc. to an all-time high of $63.30 during Monday’s session. Unfortunately, the stock reversed directions as fears of a weakening economy resurfaced. On Tuesday, shares of ASD fell to an intra-day low of $61.10 before bouncing back to close at $62.32 on volume of 309,000 shares. ASD remains in an upward trend and the recent test of support should allow the stock to move to new highs if the market heats up again. In the meantime, support is now up to the 5-dma at $62.09 with additional support at $61.04, the 10-dma. Resistance has come in at Tuesday’s intra-day high of $62.62 and then Monday’s intra-day high of $63.30. A bounce off of $62.09 or a move above $62.62 on midday volume greater than 250,000 shares may be possible entry points. We are keeping our stops at $58.50 as downside protection.

Picked on May 6th @ $62.50
Change since picked –0.18
Stop Loss @ $58.50