H&E Equipment Services (HEES)

Company

hees(2-1)
HEES 1-year chart

H&E Equipment Services "is one of the largest integrated equipment services companies in the United States with 62 full-service facilities throughout the West Coast, Intermountain, Southwest, Gulf Coast, Mid-Atlantic and Southeast regions of the United States. The Company is focused on heavy construction and industrial equipment and rents, sells and provides parts and service support for four core categories of specialized equipment: (1) hi-lift or aerial platform equipment; (2) cranes; (3) earthmoving equipment; and (4) industrial lift trucks. By providing equipment rental, sales, and on-site parts, repair and maintenance functions under one roof, the Company is a one-stop provider for its customers' varied equipment needs. This full service approach provides the Company with multiple points of customer contact, enabling it to maintain a high quality rental fleet, as well as an effective distribution channel for fleet disposal and provides cross-selling opportunities among its new and used equipment sales, rental, parts sales and service operations." (company website)

hees(2-1)
HEES 6-month chart

Buy

H&E has risen sharply since bottoming in March. Recent earnings met Expectations but gave the stock two subsequent days of high-volume price jumps. The thinking has to be: all this economic-recovery spending will result in a construction boom, which ought to show up in the bottom line of construction equipment companies, like HEES.

  • Percentage price oscillator (PPO) — after a brief dip below, the PPO has crossed back above the signal line
  • Volume — especially heavy after earnings; when price and volume move together it's supposed to be a good sign.

Based on technical analysis, MarketEdge calls HEES a "buy" in a "strong upward trend."

Sell

gain Bottom line
-11%

HEES has quite long tails on its candlesticks, and I've been watching it with a certain trepidation. Monday and Tuesday's sessions looked fairly positive, ending about where they started, but having gone much lower during the session. Wednesday's session, though was a bad omen, ending at the bottom of a big range one heavy volume. There was nothing for it bugt to bail at the earliest opportunity this morning.