Long Position on ROCK @ $18.18 on 3/21/2013 (Rumor)

Gibraltar Industries (ROCK) manufactures and distributes building products Worldwide.

It primarily serves the home improvement; residential, commercial, and industrial construction; highway construction; building materials; and architectural industries.

The company’s products include a line of bar grating and safety plank grating for use in walkways, stairs, platforms, safety barriers, drainage covers, and ventilation grates; expanded and perforated metal used in walkways, catwalks, shelving, fencing, barriers, patio furniture, and other applications; metal lath products for use in exterior stucco, stone, and tile projects; fiberglass grating; and expansion joint systems, bearing assemblies, and pavement sealing systems used in bridge and highway infrastructure construction.

Its products also consist of roof and foundation ventilation products and accessories; mail storage solutions comprising single mailboxes and cluster boxes for multi-unit housing; roof edging, underlayment, and flashing; soffits and trim; drywall corner beads; coated coil stock; metal roofing and accessories; steel framing; and rain dispersion products, such as gutters and accessories. The company sells its products to home improvement retailers and building product distributors, as well as to commercial, residential, and transportation contractors through its sales personnel and outside sales representatives.

The stock is a beneficiary of the recovery in housing stocks. Shares have formed a bullish "cup & handle" and are in the process of breaking out. We are now hearing rumors of good news for this stock. 

One of the rumors states that this stock will be named by a leading stock advisory service as one of its "top picks." This service is widely followed by mutual funds and institutional money managers. These investors have portfolios that mimic recommendations of this service. Their naming of the stock should lead to additional demand for the shares, and breaking out of the formation to the upside.

52-Week Trading Range:  $9.03 - $20.00

Entry Point:   $18.18

Stop Loss:  $17.28

Target Price:  $20.00

Updates

4/15/2013 12:29:04 PM

We closed ROCK at $17.00 after it fell below our stop loss

Position closed on 4/15/2013 at price of $17.00 with a -6.49% loss in 25 days.

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