United Rentals (URI)

It should be a great stage in the cycle for them. They rent out large building machinery. The recent move down is digesting some recent purchases. Take a position here, but they carry a lot of debt too. Edge in a bit.

The largest big-machinery rental company in the world. Trading at less than 10x earnings. They benefit from an infrastucture tailwind. Meanwhile, rental rates are rising. (Analysts' price target $195.93)

People like to rent and not buy equipment. Use a $168 stop loss.

This is a play on the US economy. Companies do not like to buy heavy equipment, they like to rent it as it is much more efficient. When the economy gets better, the capacity tightens up and prices go up. They are now seeing rising prices for their rentals for the first time in a few years. When that begins, it tends to go on for a long time. It’s a cyclical business, but if we think companies are much more optimistic than they were 18 months ago, then they are going to start to build and are going to use equipment from this company. The company generates a lot of cash. (Analysts' price target is $194.87.)

(A Top Pick Jan 26/17. Up 43.34%.) Heavy equipment rental. This is a beneficiary of a good economy, and the belief that we are going to see infrastructure expansion.

This has done extremely well. They expanded their portfolio of big equipment at the cusp of an infrastructure spend. The one thing he would caution on is that they are a fairly high beta stock, so you are going to see a fair bit of volatility. Also has a fairly levered balance sheet.

He wants to own things that benefit from corporate and business optimism. Feels capital spending will be a significant theme and industrials will play a part. This company has 2 main businesses, they rent equipment and machinery to industrial companies, and they rent construction equipment to non-residential construction companies. This is a prime beneficiary very of a stronger US economy. It has a relatively high tax rate, so they benefit from the tax plan. They also benefit from the theme that companies don't necessarily want to spend all the money on their equipment, they want to pay for it on an ongoing basis. (Analysts' price target is $160.)

A company that works beautifully into the infrastructure improvement and the rental market. If you are patient, you should see the stock move higher. Trades at a very modest multiple because it is deeply cyclical.

Reported earnings last night and had a mammoth day today. They are in the infrastructure area. They just made an acquisition that will be accretive. (Analysts’ target: $116.00).

There was a low back in January, then a downtrend which is very positive. This is a great place to hang your hat around the $79.00 range. Great place to buy. If you do own it, hang on here.

An industrial transportation type of stock. Rents out various types of equipment. It should do well in an improving economic environment. Primarily US based which is positive as the US economy is growing. Trades at a higher multiple than some of the other multi-industrials that she owns.

This is really a play on non-residential construction, and thinks it has been unfairly hurt by the sideways movement on the exposure to the oil/gas business in the US. If you believe that the non-residential construction side of this economy is going to pick up, which he does, then this is a great opportunity. Had a big drop last week, which he thinks was overdone, and the shares represent pretty good value here.

In many respects this is getting tarred with the Caterpillars (CAT-N) of the world. People are worried about a slowdown. US economy is doing very, very well and he thinks you are going to see an increase in home construction, which should be a positive for this company. There is a perception that this company has a lot to do with the oil/gas business, which is the major problem the company is dealing with. Well-managed and has grown very well in the past. Pretty good balance sheet.

(A Top Pick Jan 23/14. Up 8.57%.) This was a position that was aimed at taking advantage of a little bit more capital spending and some commercial building in the US. He still has a small amount of this in the portfolio.

He has been stopped out. It is tied to the non-residential real estate market. It is probably okay. Nothing fundamentally wrong. See it turn around a bit before putting fresh money into it.