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U S T Inc. - UST - close: 54.96 chg: -0.50 stop: 56.21

Company Description:
UST Inc. is a holding company for its principal subsidiaries: U.S. Smokeless Tobacco Company and International Wine & Spirits Ltd. U.S. Smokeless Tobacco Company is a leading producer and marketer of moist smokeless tobacco products including Copenhagen, Skoal, Red Seal and Husky. International Wine & Spirits Ltd. produces and markets premium wines sold nationally through the Chateau Ste. Michelle, Columbia Crest, Conn Creek and Villa Mt. Eden wineries, as well as distributes and markets Antinori products in the United States. (source: company press release or website)

Why We Like It:
UST has been under performing the markets and the rest of the tobacco-related stocks. The daily chart has produced a bearish double-top pattern with the February and April peaks. Now the recent oversold bounce has stalled with multiple failed rallies under technical resistance at the 200-dma. Volume is creeping higher this week and we expect the next move to be down. We are suggesting shorts right here with a tight stop loss at $56.21. More conservative traders may want to use a trigger under the May low (54.34) before opening positions. A breakdown under $54.00 would produce a new Point & Figure chart sell signal. We have two targets. Our conservative target is $52.60-52.50. Our more aggressive target is the $50.50-50.00 range.

Picked on May 23 at $54.96
Change since picked: + 0.00
Earnings Date 07/26/07 (unconfirmed)
Average Daily Volume: 965 thousand
 

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