Long Position on UEIC @ $26.25 on 5/20/2013 (Rumor)

Universal Electronics (UEIC) develops and manufactures pre-programmed universal wireless remote control products, accessories, and software products for home entertainment systems.

The company offers universal infrared and radio frequency remote controls; audio-video accessories; integrated circuits on which software and universal device control database is embedded; and software, firmware, and technology solutions, which enable devices, such as televisions, set-top boxes, stereos, smart phones, tablets, gaming controllers, and other consumer electronic devices to wirelessly connect and interact with home networks and interactive services to deliver digital entertainment and information. It also develops a portfolio of patented technologies and a database of home connectivity software, and IR and RF codes.

The company sells its products directly, as well as through distributors in Europe, Australia, New Zealand, South Africa, the Middle East, Mexico, Asia, and Latin America under the One For All and Nevo brands. It primarily serves cable and satellite television service providers, original equipment manufacturers, retailers, private label companies, and personal computing companies.

Shares have formed a bullish "flag" following the company's quarterly results. Higher prices are expected for this stock.

We are now hearing rumors of good news for this company. One of the rumors states that this stock will be named by the leading stock advisory service as one of its "top picks." This service is widely followed by mutual funds and institutional money managers. These investors have portfolios that mimic recommendations of this service. Their naming of the stock should lead to additional demand for the shares.

52-Week Trading Range:  $11.40 - $27.21

Entry Point:  $26.25

Stop Loss:  $25.20

Target Price:   $28.88

Updates

6/21/2013 9:52:24 AM

We are closing UEIC at $26.70 after the stock failed to reach our +10% target in 30 days.

Position closed on 6/21/2013 at price of $26.70 with a 1.71% gain in 32 days.

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