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 24, 2001

American Standard Companies, Inc. is gaining momentum following its presentation at Wednesday’s Merrill Lynch Global Industries Conference in London. On Thursday, shares of ASD closed at its intra-day high of $65.60 on volume of 504,000 shares. The stock has put in three consecutive higher lows on increasing volume so ASD may be able to challenge its all-time high in the near future. From a technical standpoint, support has moved up to Thursday’s intra-day low of $65.10 with stronger support at $64.34, the 10-dma. Resistance is now at Friday’s intra-day high of $66.50 and then possibly $67 or $68. Traders may consider starting new plays on a bounce off of $65.10 or a move above $66.50 on volume of at least 250,000 shares by noon. We are keeping our stops at $63.50 to lock in gains.

Picked on May 6th @ $62.50
Change since picked +3.10
Stop Loss @ $63.50

May 22, 2001

American Standard Companies, Inc. has been consolidating after hitting an all-time high of $66.50 last week. On Tuesday, shares of ASD fell to an intra-day low of $64.80 before bouncing back to a close of $65.15 on volume of 468,000 shares. Despite the recent weakness, ASD was able to close above its 5-dma, keeping the long-term upward trend alive. Daily volume is picking up so ASD could be able to challenge its all-time high on a positive volume surge. In the meantime, support is the 5-dma at $64.92 with additional support at $63.84, the 10-dma. Resistance has fallen to Monday’s intra-day high of $65.45 and then Friday’s intra-day high of $66.50. A bounce off of $64.92 or a move above $64.92 on midday volume greater than 250,000 shares may be possible entry points. Our stops are holding steady at $63.50.

Picked on May 6th @ $62.50
Change since picked +2.65
Stop Loss @ $63.50

May 20, 2001

American Standard Companies, Inc. took a small step backward on Friday. Shares of ASD hit an intra-day high of $66.50 but the stock could not get into record territory. Instead, ASD made a full reversal to end the session at $65.45 on volume of 447,000 shares. The stock is definitely hitting some resistance at $66.50 following its breakout and ASD may be losing its momentum. On the positive side, the stock remains in a firm upward trend and daily volume has picked up over the last two days. For now, support has moved up to $65 with stronger support at $63.74, the 5-dma. Resistance is holding steady at Friday’s intra-day high of $66.50 and then $68. Traders may consider opening new positions on a bounce off of $65 or a breakout above $66.50 on volume of at least 250,000 shares by noon. We are leaving our stops at $63.50 to lock in gains.

Picked on May 6th @ $62.50
Change since picked +2.95
Stop Loss @ $63.50