Long Position on EXH @ $31.75 on 11/12/2013 (Momentum)

Bullish Flag on EXHExterran Holdings (EXH) provides operations, maintenance, service, and equipment for the oil and natural gas production, processing, and transportation applications.

The company’s Contract Operations segment offers natural gas compression and production, and processing services, as well as engages in the engineering, procurement, and on site construction of natural gas compression stations and/or crude oil or natural gas production and processing facilities. As of December 31, 2012, this segment provided contract operations services primarily using a fleet of 7,651 natural gas compression units with an aggregate capacity of approximately 3,376,000 horsepower in North America; and a fleet of 1,032 units with an aggregate capacity of approximately 1,265,000 horsepower internationally.

Its Aftermarket Services segment sells parts and components; and provides operation, maintenance, overhaul, and reconfiguration services for compression, production, treating, and oilfield power generation equipment. The company’s Fabrication segment engages in the design, engineering, installation, fabrication, and sale of natural gas compression units, and accessories and equipment used in the production, treatment, and processing of crude oil and natural gas; provision of engineering, procurement, and fabrication services primarily related to the manufacturing of critical process equipment for refinery and petrochemical facilities; and fabrication of tank farms, and evaporators and brine heaters for desalination plants.

Its products include line heaters, oil and natural gas separators, glycol dehydration units, condensate stabilizers, dewpoint control plants, water treatment, mechanical refrigeration and cryogenic plants, and skid-mounted production packages designed for onshore and offshore production facilities. 

Shares have formed a bullish "flag" after the firm reported a stronger than expected earnings report. Higher share prices are expected for this stock.

52-Week Trading Range: $19.09 - $32.55

Entry Point: $31.75

Stop Loss: $30.15

Target Price: $34.92

Updates

12/13/2013 1:45:47 PM

EXH position is closed after stock failed to reach our target price in 30 days or less.

Position closed on 12/13/2013 at price of $31.23 with a -1.64% loss in 31 days.

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