Long Position on AOS @ $59.80 on 2/3/2015 (Momentum)

A. O. Smith Corporation (AOS) manufactures and sells water heaters and boilers to the residential and commercial end markets primarily in the United States, Canada, China, Europe, India, and the Middle East.

It operates in two segments, North America and Rest of World.

The company offers a line of electric, natural gas, liquid propane, solar tank, gas tankless, and electric water heaters for applications in residences, restaurants, hotels and motels, laundries, car washes, and small businesses; and residential and commercial boilers primarily for space heating applications in hospitals, schools, hotels, and other large commercial buildings.

It also provides boilers and expansion tanks, commercial solar water heating systems, swimming pool and spa heaters, and related products and parts. The company sells its products through independent wholesale plumbing distributors, hardware and home center chains, and manufacturer representative firms. It sells water heaters to approximately 5,900 retail outlets, as well as water treatment products to 2,900 retail outlets in China.

Shares have formed a bullish "flag" after it reported  strong quarterly results. Higher share prices are expected for this stock.

52-Week Trading Range: $44.14 - $60.24

Entry Point: $59.80

Stop Loss: $56.81

Target Price: $65.78

Updates

3/4/2015 2:29:16 PM

We are taking profits on AOS at $63.31 after its 30 days expired.

Position closed on 3/4/2015 at price of $63.31 with a 5.87% gain in 29 days.

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