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Long Position on USCR @ $57.50 on 3/21/2016 (Momentum)

Bullish Cup & Handle on USCRU.S. Concrete, Inc. (USCR) produces and sells ready-mixed concrete, aggregates, and concrete-related products and services for the construction industry in the United States.

It operates through two segments, Ready-Mixed Concrete and Aggregate Products.

The Ready-Mixed Concrete segment is involved in the formulation, preparation, and delivery of ready-mixed concrete to customers’ job sites; and the provision of various services that include the formulation of mixtures for specific design uses, on-site and lab-based product quality control, and customized delivery programs.

The Aggregate Products segment offers crushed stone, sand, and gravel for use in commercial, industrial, and public works projects. The company also engages in the operation of building materials stores; provision of concrete blocks, lime slurry, and Aridus rapid-drying concrete technology; sale of brokered products; hauling and recycled aggregates operation activities; and operation of drum mixer trucks, as well as transfer trucks for transporting cement and aggregates.

It primarily serves concrete sub-contractors, general contractors, governmental agencies, property owners and developers, architects, engineers, and home builders in north and west Texas, California, New Jersey, New York, Washington, D.C., and Oklahoma.

Shares have formed a bullish "cup and handle" following the company's earnings in Februrary. Here are the highlights of that report compared to previous year.  We expect higher share prices for this stock. 

  • Adjusted earnings per diluted share increased 80.4% to $0.92
  • Adjusted EBITDA increased 72.1% to $32.7 million
  • Adjusted EBITDA margin improved 180 basis points to 12.4%
  • Consolidated revenue grew 46.8% to $263.6 million
  • Ready-mixed concrete revenue increased 50.0% to $238.1 million
  • Ready-mixed concrete sales volume rose 37.5% to approximately 1.9 million cubic yards
  • Ready-mixed concrete average sales price improved 9.0% to $125.41 per cubic yard
  • Aggregate products revenue increased 20.1% to $16.9 million

52-Weeks Trading Range: $32.49 - $62.82

Entry Point: $57.50

Stop Loss: $54.60

Target Price: $63.25

Updates

3/30/2016 9:32:48 AM

USCR closed at $63.50.

Position closed on 3/30/2016 at price of $63.50 with a 10.43% gain in 9 days.

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