Long Position on SERV @ $36.00 on 3/18/2015 (Momentum)

Bullish Cup & Handle on SERVServiceMaster Global Holdings, Inc. (SERV) provides residential and commercial services in the United States.

It operates in three segments: Terminix, American Home Shield, and the Franchise Services Group.

The Terminix segment offers termite and pest control services, including termite remediation, annual termite inspection and prevention treatments with damage claim guarantees, periodic pest control services, insulation services, mosquito control, crawlspace encapsulation, and wildlife exclusion. This segment markets its services to both homeowners and businesses through a national sales team and sales professionals in the company’s branches and call centers.

The American Home Shield segment provides home warranty plans that cover the repair or replacement of household systems and appliances, such as electrical, plumbing, central heating and air conditioning systems, water heaters, refrigerators, dishwashers, and ovens/cook tops. This segment markets its services primarily through the Internet, direct mail, television and radio advertising, print advertisements, marketing partnerships, telemarketing, and various social media channels, as well as through a national sales team and various participants in the residential real estate marketplace, such as real estate brokerages, financial institutions, and insurance carriers.

The Franchise Services Group segment offers disaster restoration, janitorial, residential cleaning, furniture repair, and home inspection services through franchisees under the ServiceMaster Restore, ServiceMaster Clean, Merry Maids, Furniture Medic, and AmeriSpec brands. This segment markets its services primarily through its franchise network, branch operations, and a national sales team to a combination of business-to-business and business-to-consumer audiences. 

Shares have formed a bullish "cup & handle" and higher share prices are expected for this stock.

 

52-Weeks Trading Range: $17.05 - $36.66

Entry Point: $36.00

Stop Loss: $34.20

Target Price: $39.60

 

Updates

3/30/2015 9:51:05 AM

SERV fell below our stop loss after DOJ started investigating the Terminex subsidiary of the Company. Closed at $32.85.

Position closed on 3/30/2015 at price of $32.85 with a -8.75% loss in 12 days.

Back to Portfolio