Long Position on AGX @ $46.25 on 8/3/2016 (Momentum)

Bullish Cup & Handle on AGXArgan, Inc. (AGX) provides engineering, procurement, construction, commissioning, operations management, maintenance, development, and consulting services to the power generation and renewable energy markets.

It operates through Power Industry Services, Industrial Fabrication and Field Services, and Telecommunications Infrastructure Services segments.

The Power Industry Services segment offers engineering, procurement, and construction contracting services to the owners of alternative energy facilities, including biomass plants, wind farms, and solar fields; and design, construction, start-up, and operation services for approximately 76 facilities with approximately 14,000 megawatts of power-generating capacity. This segment serves independent power project owners, public utilities, municipalities, public institutions, and private industry.

The Industrial Fabrication and Field Services segment provides industrial fabrication and construction services to light and heavy industrial organizations that include pulp and paper, petrochemical, and power companies in the southern United States.

The Telecommunications Infrastructure Services segment engages in the outside plant cabling services, such as trench-less directional boring and excavation for underground communication and power networks; aerial cabling services; and the installation of buried cable, high and low voltage electric lines, and private area outdoor lighting systems. This segment also offers inside premises wiring services, which include structuring, cabling, terminations, and connectivity that provide the physical transport for high speed data, voice, video, and security networks. It serves state and local government agencies, regional communications service providers, electric utilities, other commercial customers, and federal government facilities, including cleared facilities in the mid-Atlantic region.

The company reported its last quarterly report in June. It reported EPS of 81 cents, 17 cents above the estimates. Since then shares have formed a bullish "cup and handle" and are about to move to higher out of this formation. Higher share prices are expected. 

 

52-Weeks Trading Range: $28.03 - $47.14

Entry Point: $46.25

Stop Loss: $43.70

Target Price: $50.85

Updates

9/7/2016 10:39:25 AM

AGX closed at $52.82.

Position closed on 9/7/2016 at price of $52.82 with a 14.21% gain in 35 days.

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