Long Position on DW @ $28.93 on 8/22/2012 (Rumor)

Drew Industries (DW) manufactures and markets various components for recreational vehicles and manufactured homes in the United States. It operates in two segments, Recreational Vehicle Products (RV) and Manufactured Housing Products (MH).

The RV segment manufactures various products used primarily in the production of RVs, including towable steel chassis, axles, and suspension solutions; slide-out mechanisms and solutions; thermoformed bath, kitchen, and other products; entry steps; and manual, electric, and hydraulic stabilizer and leveling systems.

Drew Industries also offers aluminum windows and screens; chassis components; furniture and mattresses; entry, baggage, patio, and ramp doors; awnings; and other accessories. The MH segment manufactures various products used in the production of manufactured homes, modular housing, and office units, such as vinyl and aluminum windows and screens, thermoformed bath and kitchen products, steel and fiber glass entry doors, aluminum and vinyl patio doors, steel chassis, steel chassis parts, and axles.

The company also offers components for truck caps and buses, as well as for trailers that are used to haul boats, livestock, equipment, and other cargo.

We are now hearing rumors of good news for this company. One of the rumors states that this stock will be named by the 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.

Shares are heading higher in a bullish "flag" and are expected to move higher out of this formation.

52-Week Trading Range:  $17.82 - $30.55

Last Trade:    $28.93

Stop loss:  $27.50

Price Target:  $31.82

Position closed on 9/25/2012 at price of $30.98 with a 7.09% gain in 34 days.

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