Long Position on USG @ $34.10 on 3/16/2017 (Momentum)

Bullish Cup and Handle on USGUSG Corporation (USG) manufactures and sells building materials worldwide.

The company's Gypsum segment manufactures and markets gypsum and related products to construct walls, ceilings, roofs, and floors of residential, commercial, and institutional buildings, as well as for various industrial applications. This segment offers gypsum panels, as well as joint compounds, corner beads, joint tapes, and plasters for wallboard joints finishing under the Sheetrock brand; cement board under the Durock brand; backerboard that includes abuse-resistant interior wall panels, tile backer boards, and flooring underlayments under the Fiberock brand; poured gypsum flooring systems under the Levelrock brand; roof boards under the Securock brand; and air-water barrier system and industrial gypsum under the ExoAir 430 brand.

It also provides construction plaster products under the Red Top, Imperial, Diamond, and Supremo brands; and gypsum-based products for agricultural and industrial customers. The company’s Ceilings segment manufactures and markets interior systems products, including ceiling tiles under the Radar, Eclipse, Mars, and Halcyon brands; and ceiling grids under the Donn, DX, Fineline, Centricitee, Identitee DXI, Curvatura, and Compasso brands.

Its USG Boral Building Products segment manufactures, distributes, and sells various building products, mines raw gypsum, and sells natural and synthetic gypsum. This segment offers plasterboards under the USG Boral Sheetrock brand; and ceiling suspension systems under the USG Boral NextGen, Elephant, Jayaboard, Durock, and Donn DX brands, as well as mineral fiber ceiling tiles, steel grids, and joint compounds for wall, ceiling, floor lining, and exterior systems.

The company distributes its products through building material dealers, home improvement centers and other retailers, specialty wallboard distributors, and contractors.

Shares have formed a bullish "cup and handle" and higher share prices are expected for this stock. Note that the strong housing market the main driver for this stock.

 

52-Weeks Trading Range: $20.68 - $34.67

Entry Point: $34.10

Stop Loss: $32.40

Target Price:  $37.50

Updates

4/7/2017 9:48:50 AM

USG closed at $31.00

Position closed on 4/7/2017 at price of $31.00 with a -9.09% loss in 22 days.

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