United Rentals, Inc. (NYSE:URI)
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An equipment rental company that offers for rent over 20,000 classes of rental equipment, including heavy machines & hand tools, to customers that include construction & industrial companies, manufacturers, utilities, municipalities, homeowners & others.
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This stock was grossly undervalued a month ago but has been creeping up. I bought on March 9th for $3.04 and have already made a reasonable profit. This company tends to have a boom and bust cycle which follows the construction economy. I bought this in 2002 for about $5 and sold in 2007 for about $33. It is a good company that is the leader in its field but is beat up by macro conditions. They have closed a number of under-performing stores and bought back shares so that now there are only sixty million outstanding. The economy will eventually recover and URI will be well positioned to take advantage. Sure the company isn't very profitable at this exact moment but if you are a buy and hold value investor as I am, you can make a lot riding this company up over the next five to seven years.