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United Industrial Crp. - UIC - cls: 29.23 chg: -1.92 stop: 31.51

Company Description:
United Industrial Corporation is a company focused on the design, production and support of defense systems. Its products include unmanned aerial vehicles, engineering and logistics services, and test and training systems. The Company also manufactures combustion equipment for biomass and refuse fuels. (source: company press release)

Why We Like It:
Looking at what UIC's products and services one would think they are in the right industry for growth. Military logistics and unmanned vehicles are sure to be growth industries. UIC's earnings report yesterday proved that with what sounded like an outstanding quarter for the company. Too bad the 39 cents per share came in below analyst estimates. The stock reacted poorly today and broke down under its simple and exponential 200-dma in addition to breaking down under the $30.00 mark on strong volume that was more than double the norm. Technicals are obviously bearish here and its P&F chart is in a sell signal pointing to a $20.00 target. We are targeting a drop into the $26.00-25.00 range. If UIC produces an oversold bounce tomorrow look for resistance and a failed rally in the $30.00-31.00 region.

Picked on March 17 at $29.23
Change since picked: - 0.00
Earnings Date 03/16/05 (confirmed)
Average Daily Volume: 181 thousand

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West Marine - WMAR - close: 21.20 chg: -1.18 stop: 23.11

Company Description:
West Marine, Inc. is the nation's largest specialty retailer of boating supplies and apparel, with 377 stores in 38 states, Canada and Puerto Rico, and more than $680 million in annual sales. The Company's successful catalog and Internet channels offer customers approximately 50,000 products -- far more than any competitor -- and the convenience of being able to exchange catalog and Internet purchases at its retail stores. The Company's Port Supply division is the country's largest wholesale distributor of marine equipment serving boat manufacturers, marine services, commercial vessel operators and government agencies. (source: company press release)

Why We Like It:
WMAR has been stuck in a trading range between $22.00 and $25.00 for most of the last 4 1/2 months. Shares tried to breakout in early February but failed near $27.00. Since then the stock has been sliding save for a brief five-day bounce just before earnings in early March. The earnings report was disappointing and WMAR has continued to slide ever since. Now the stock has broken down below its 200-dma and the bottom of its trading range at $22.00 on volume over twice the average. The next stop looks like the $19.00 level where shares bounced in October. We are going to target the $19.00 region. Readers can be patient and look for an oversold bounce back toward $22.00-22.25 and then short a failed rally there.


Picked on March 17 at $21.20
Change since picked: - 0.00
Earnings Date 03/03/05 (confirmed)
Average Daily Volume: 155 thousand
 

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