Long Position on URI @ $42.60 on 12/10/2012 (Momentum)

Cup & Handle on URIUnited Rentals (URI) operates as an equipment rental company. It offers approximately 3,000 classes of equipment for rent to customers comprising construction and industrial companies, manufacturers, utilities, municipalities, homeowners, and government entities.

The company’s fleet of rental equipment includes general construction and industrial equipment, such as backhoes, skid-steer loaders, forklifts, earthmoving equipment, and material handling equipment; aerial work platforms consisting of boom lifts and scissor lifts; and general tools and light equipment, including pressure washers, water pumps, generators, heaters, and power tools. Its fleet also comprise trench safety equipment, such as trench shields, aluminum hydraulic shoring systems, slide rails, crossing plates, construction lasers, and line testing equipment for underground work; and power and heating, ventilating, and air conditioning (HVAC) equipment, which consists of portable diesel generators, electrical distribution equipment, and temperature control equipment, including heating and cooling equipment.

In addition, the company sells new and used equipment, as well as related contractor supplies, parts, and service; and offers repair, maintenance, and rental protection services. Further, it develops and markets RENTALMAN, an enterprise resource planning application for equipment rental companies; and INFOMANAGER, which offers solution for creating a business intelligence system.

Shares have formed a bullish "cup and handle" and are in the process of moving higher out of this formation.

 

52-Week Trading Range:   $25.44 - $47.98

Last Trade:   $42.60

Stop Loss:  $40.47

Target Price:  $46.86

Position closed on 1/2/2013 at price of $48.50 with a 13.85% gain in 23 days.

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