Long Position on CMCO @ $14.90 on 7/27/2012 (Rumor)
CMCO designs, manufactures, and markets material handling products and services for various commercial and industrial end-user markets in the United States, Europe, Canada, and internationally. The company offers electric, lever, hand, and air-powered hoists; hoist trolleys; winches; industrial crane systems, such as bridge, gantry, and jib cranes; alloy and carbon steel closed-die forged attachments, including hooks, shackles, hitch pins, and master links; and closed-die forged attachments comprising hooks, shackles, textile slings, clamps, logging tools, and load binders. It also provides industrial components consisting of mechanical and electromechanical actuators and rotary unions; below-the-hook special purpose lifters; clamps; textile strappings; tire shredders; and light-rail systems. The company offers its products through commercial distributors and end-users under the Budgit, Chester, CM, Coffing, Duff-Norton, Little Mule, Pfaff, Shaw-Box, Yale, and Herc-Alloy brand names. It sells its products to various industries, which include manufacturing, power generation and distribution, utilities, wind power, warehouses, commercial construction, oil exploration and refining, petrochemical, marine, ship building, transportation and heavy duty trucking, agriculture, logging, and mining, as well as to the entertainment industry comprising permanent and traveling concerts, live theater, and sporting venues. We are now hearing rumors of good news for this stock. One of the rumors states that when the firm report earnings on August 15th, the results will be much better than the Street expects. Shares are heading higher in a bullish "cup and handle" and are expected to move higher in this formation. The stock has a 52-week trading range of $9.84 - $18.02. Shares last traded at $14.73. Should you decide to take a position, wait for the morning volatility to wear off and use a stop-loss of $13.95 (five percentage points below your purchase price.) Be sure to use a limit order and not a market order. Keep in mind that our price target is 10% higher than your purchase price.
Position closed on 8/28/2012 at price of $14.91 with a 0.07% gain in 32 days.
