Long Position on HDS @ $26.50 on 4/7/2014 (Momentum)

Bullish Flag on HDSHD Supply Holdings (HDS) operates as an industrial distribution company in North America.

It operates in four segments: Facilities Maintenance, Waterworks, Power Solutions, and White Cap.

The company distributes maintenance, repair, and operations products, including electrical and lighting items, plumbing products, HVAC products, appliances, janitorial supplies, hardware, kitchen and bath cabinets, window coverings, textiles and guest amenities, healthcare maintenance products, and water and wastewater treatment products; fasteners, builders hardware, ropes and chains, and plumbing accessories; and kitchen cabinets, windows, plumbing materials, masonry, electrical equipment, lumber, flooring and tools, and tool rentals. It also provides power solutions, including pole line hardware, wires and cables, gears and controls, power equipment, fixtures and lighting, and meters; and water and wastewater transmission products, such as pipes, fittings, valves, fire protection, metering systems, storm drains, and hydrants, as well as offers fusion machine rental, and valve testing and repair services. In addition, the company provides specialty construction products, such as concrete accessories and chemicals, tools, engineered materials and fasteners, safety products, and erosion and waterproofing products; and floorings, cabinets, countertops, and window coverings, as well as provides design center services.

It serves contractors, government entities, maintenance professionals, home builders, and industrial businesses in the maintenance, repair, and operations; infrastructure and power; and specialty construction markets.

Shares  of this recent IPO have formed a bullish "flag" and higher share prices are expected for this stock. The flag formation is due to the surge in residentual and commercial construction. Please note that the firm loses money and is not profitable yet!

52-Week Trading Range: $17.80 - $27.39

Entry Point: $26.50

Stop Loss: $25.17

Target Price: $29.15

Updates

4/14/2014 9:50:02 AM

HDS fell below our stop loss. Closed at $25.

Position closed on 4/14/2014 at price of $25.00 with a -5.66% loss in 7 days.

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