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A.S.V.Inc - ASVI - close: 45.87 chg: -2.73 stop: 49.01

Company Description:
ASV designs, manufactures and sells rubber track loaders and related accessories, attachments and traction products. ASV also manufactures rubber track undercarriages, some of which are a primary component on Caterpillar's Multi Terrain Loaders. With its patented undercarriage technology, ASV leads all rubber track loaders in technology and innovation. ASV's products are able to traverse nearly any terrain with minimal damage to the ground, making it effective in industries such as construction, landscaping and agriculture. (source: company press release or website)

Why We Like It:
ASVI managed to beat Wall Street's earnings estimates by a penny today but that failed to inspire investors who "sold the news". After the stock's impressive three-month rally we believe that today's earnings report has sparked the beginning of a consolidation as traders lock in profits. The initial dip this morning was bought but buyers could not power the stock higher than the $47.00 level, which had been recent support. This is typical as broken support tends to become resistance. We view this as a failed rally and combined with the new MACD sell signal it looks like an entry point for shorts. We are going to target the 200-dma but we'll set a target range of $40.50-40.00 to begin with. We are suggesting shorts here under $46.00 but more conservative traders may want to see some confirmation and wait for a decline under the $45.00 level.

Picked on July 28 at $45.87
Change since picked: - 0.00
Earnings Date 07/28/05 (confirmed)
Average Daily Volume: 120 thousand

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Anheuser Busch - BUD - cls: 44.77 chg: +0.65 stop: 46.25

Company Description:
Based in St. Louis, Anheuser-Busch Cos. Inc. is the leading U.S. brewer and holds a 50 percent share in Grupo Modelo, Mexico's leading brewer. The company also is one of the largest theme park operators in the United States, is a major manufacturer of aluminum cans and is the world's largest recycler of aluminum beverage containers. (source: company press release or website)

Why We Like It:
Investors did not respond well to BUD's earnings report on July 27th and the stock broke down to new 2 1/2 year lows. Shares had already been in a downtrend for months and this just seemed to confirm its direction. Today's oversold bounce failed near its previous lows in what looks like a perfect failed rally entry point for new shorts. Now BUD does not move very fast but we're going to aim for the $40.25-40.00 range with a ten to twelve week time frame. If the major indices begin to consolidate between now and then we might get lucky and see BUD decline more quickly. The Point & Figure chart is bearish and points to a $35 price target.

Picked on July 28 at $44.77
Change since picked: - 0.00
Earnings Date 07/27/05 (confirmed)
Average Daily Volume: 2.3 million
 

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