Thursday, February 01, 2007

Trade Ideas: EME

The Russell 2000 is generating a little breathing space on yesterday's breakout. Large caps are making another attempt to close with breakouts of their own. Reasonable buying in the Trade Ideas scan: 8 picks covered a time span of 4 minutes.

There were a number of picks pushing above the 20 appearance mark.: VNO (36), GCO (26), WYN (49), CBE (23), SLF (27), DKS (23) and EME (39). One of the first to break above the mark was Emcor Group (EME).

The stock trades inside a declining channel, having bounced off support (c$55) on a MACD trigger 'buy' - also $1 above the 200-day MA. The stock has managed to post a new reaction high, closing above both 20-day and 50-day MAs, and currently sits on the verge of a channel breakout. The point-n-figure chart is a little mixed with a bullish reversal signal, but a bearish target of $47. A measured move would take it to around $75.

EMCOR Group, Inc. provides mechanical and electrical construction and facilities services worldwide. The company, through its subsidiaries, designs, integrates, installs, starts up, operates, and maintains various electrical and mechanical systems, including heating, ventilation, air conditioning, refrigeration, and clean room process ventilation; plumbing, process, and purity; fire protection; lighting; voice and data communications; and low voltage systems, such as fire alarm, security, communications, and process control. It also provides facilities services, such as site based operations and maintenance; mobile maintenance and services; facilities management; remote monitoring; installation and support for building systems; technical consulting and diagnostic service; small modification and retrofit projects; and program development and management for energy systems. EMCOR Group serves commercial, industrial, utility, and institutional customers. It provides construction and facilities services directly to corporations, municipalities, and other governmental entities; owners/developers; and tenants of buildings, as well as acts as a subcontractor to general contractors, systems suppliers, and other subcontractors. The company was founded in 1966. It was formerly known as JWP, Inc. and changed its name to EMCOR Group, Inc. in 1994. EMCOR Group is headquartered in Norwalk, Connecticut.

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