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UST Inc - UST - close: 44.12 change: -1.19 stop: 46.01

Company Description:
UST, through its subsidiaries, is a leading producer and marketer of moist smokeless tobacco products including Copenhagen, Skoal, Red Sea and Husky. Other consumer products marketed by UST subsidiaries include premium wines sold nationally through the Chateau Ste. Michelle, Columbia Crest, Conn Creek and Villa Mt. Eden wineries as well as sparkling wine produced under the Domaine Ste. Michelle label. (source: company press release)

Why We Like It:
We like UST for its technical breakdown today. The stock got crushed a couple of weeks ago after missing its Q1 earnings estimates and then warning for the second quarter. Since then UST has been consolidating in a tight range above support at the $45.00 level. That support broke down today on volume about double the average, which suggests more weakness ahead. The P&F chart is very bearish with a $33.00 target. We are targeting a drop to the $40.50-40.00 range. We'll start the play with a stop loss at $46.01 just above the 200-dma. Should UST bounce back toward the $45.00 level readers can use a failed rally there as a new bearish entry point.

Picked on May 10 at $44.12
Change since picked: - 0.00
Earnings Date 04/26/05 (confirmed)
Average Daily Volume: 1.0 million
 

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