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 17, 2001

American Standard has made a nice recovery over the past two sessions. On Thursday, shares of ASD traded to an all-time high of $66.50 before pulling back to close at $65.48 on volume of 563,000 shares. ASD was able to rebound after testing the 20-dma, so the stock may be able to resume its upward trend. Going forward, ASD has support at the May 11th intra-day high of $63.85 with additional support at $63.30, the 5-dma. Resistance has moved up to Thursday’s intra-day high of $66.50 and then possibly $67 or $68. Look for a bounce off of $63.85 or a breakout above $66.50 on midday volume greater than 250,000 shares before starting new plays. We are moving our stops up to $63.50 to lock in a gain.

Picked on May 6th @ $62.50
Change since picked +2.98
Stop Loss @ $63.50

May 15, 2001

American Standard sold off after hitting an all-time high of $63.85 last week. On Tuesday, shares of ASD fell to an intra-day low of $61.17 before bouncing back to finish the day at $62.05 on light volume of 267,000 shares. The stock closed below the 10-dma for the first time since April 25th, breaking its upward trend. Daily volume has declined over the past week, so ASD may spend some time consolidating in the $61-$64 range until the volume picks up. Until then, support is the 20-dma at $61.05 with stronger support at the April 30th intra-day low of $60. Resistance is now at Monday’s intra-day high of $62.95 and then $63.85, the all-time high. Traders may consider opening new positions on a bounce off of $61.05 or a move above $62.95 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 -0.45
Stop Loss @ $58.50

May 13, 2001

American Standard Companies, Inc. traded to an all-time high of $63.80 on news of improving auto sales contained in the April Retail Sales report. However, the stock could not hold on to the gains due to general market weakness. Shares of ASD ended the session at $63.27 on light volume of 276,000 shares. The stock has put in three consecutive higher highs on top of higher lows, so ASD may have enough momentum to continue to hit new highs. However, the daily volume has been declining over the past two weeks and this could lead to trouble down the road. In the meantime, support is the 5-dma at $62.82 with additional support at the 10-dma, currently at $62.09. Resistance is now up to Friday’s intra-day high of $63.80 and then $65. Look for a bounce off of $62.82 or a breakout above $63.80 on midday volume greater than 250,000 shares before starting new plays. Our stops are holding steady at $58.50.

Picked on May 6th @ $62.50
Change since picked +0.77
Stop Loss @ $58.50