Shares in equipment rental company Ashtead rose by over 8 per cent after Hurricane Sandy left a trail of destruction up the east cost of the US, raising the prospect of lots of new business when repairs get under way. This means our trading idea is losing money and, with a post-election market rally also possible, we are quitting our sell recommendation.
IC TIP:
Hold
at
386p
The trading idea was simple - shares in Ashtead and its near rival United Rentals had moved in lock-step for three years when this summer Ashtead's price headed north and United's went south. We thought this had to correct. Eventually, maybe, but the gap between these two is now at record levels, and Ashtead's shares have risen 23 per cent since our sell tip.