Long Position on POOL @ $82.40 on 3/10/2016 (Momentum)

Bullish Cup and Handle on POOLPool Corporation (POOL) distributes swimming pool supplies, equipment, and related leisure products in North America, Europe, South America, and Australia.

The company offers approximately 160,000 national brand and its own-branded products. Its products include maintenance products, such as chemicals, supplies, and pool accessories; repair and replacement parts for pool equipment, including cleaners, filters, heaters, pumps, and lights; packaged pool kits comprising walls, liners, braces, and coping for in-ground and above-ground pools; pool equipment and components for new pool construction and the remodeling of existing pools; and irrigation and landscape products consisting of irrigation system components and professional lawn care equipment and supplies.

The company also distributes building materials for use in pool installations and remodeling, such as concrete, plumbing and electrical components, functional and decorative pool surfaces, decking materials, tiles, hardscapes, and natural stones; and commercial products, including ASME heaters, safety equipment, and commercial pumps and filters. In addition, it offers discretionary recreational and related outdoor lifestyle products that enhance consumers’ use and enjoyment of outdoor living spaces, such as spas, grills, and components for outdoor kitchens.

The company sells its products through sales centers to swimming pool remodelers and builders; specialty retailers that sell swimming pool supplies; swimming pool repair and service businesses; landscape construction and maintenance contractors; and municipal, golf course, and other commercial customers. 

Shares have formed a bullish "cup and handle" ahead of its earnings next month. Estimates call for EPS of 25 cents. We believe the firm will beat the estimates. Higher share prices are expected for this stock.

52-Weeks Trading Range: $64.50 - $84.53

Entry Point: $82.40

Stop Loss: $78.00

Target Price: $90.60

 

 

Updates

4/13/2016 3:34:06 PM

POOL closed at $90.65.

Position closed on 4/13/2016 at price of $90.65 with a 10.01% gain in 34 days.

Back to Portfolio