Long Position on GNRC @ $25.88 on 10/3/2012 (Momentum)

Bullish Flag on GNRCGenerac Holdings (GNRC) designs, manufactures, and markets a range of generators and other engine powered products for the residential, light commercial, industrial, and construction markets in the United States and Canada.

It offers generators and other products fueled by natural gas, liquid propane, gasoline, diesel, and Bi-Fuel under the Generac and Magnum brands. The company’s product line includes residential power products, commercial and industrial power products, and other products. Its residential power products comprise automatic residential standby generators that range in output from 6kW to 60kW; air-cooled residential standby generators, which range in outputs from 6kW to 20kW; and liquid-cooled generators that range in outputs from 20kW to 60kW.

The residential power product line also includes portable generators consisting of GP series ranging from 1,850W to 17,500W for homeowners; the XG series ranging from 4,000W to 10,000W for the premium homeowner market; the XP series ranging from 4,000W to 8,000W for the professional contractor market; and the iX series ranging from 800W to 2,000W for the recreational market.

The company’s industrial and commercial power products comprise light-commercial standby generators ranging from 22kW to 150kW for grocery stores, convenience stores, restaurants, gas stations, pharmacies, retail banks, and healthcare facilities; single-engine industrial generators, which range in output from 10kW to 600kW; and generator systems ranging from 20kW air-cooled generators to 3mW modular power system for the telecommunications market, as well as aftermarket service parts and RV generators.

The company sells its generators through independent residential and industrial dealers, wholesalers, national accounts, private label arrangements, retailers, catalogs, e-commerce merchants, equipment rental companies and dealers, and construction companies. Shares have formed a bullish "flag" after the firm guided higher. We expect higher prices for the stock.

52-Week Trading Range:  $18.35 - $30.61

Last Trade: $25.88

Stop Loss:  $24.50

Target Price:  $28.45


10/31/2012 9:46:43 AM

GNRC reported great earnings and guided higher. We are closing the position at $32.88

Position closed on 10/31/2012 at price of $32.88 with a 27.05% gain in 28 days.

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