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Fuel Systems Solutions (FSYS)

November 19th, 2009 · No Comments

Another of our buy advices from June that has more than doubled..
On June 2 this year we adviced a position in FSYS at $22.50. With the stock now trading at $52 and change, it still isn’t particularly expensive for a growth company (next year’s p/e is just over 19), but technically it is getting a little overheated. We expect a small pullback or at least some consolidation. See the chart:

You could sell some out of the money call options (December 55 for around $2), or if you are invested, take a few of the table. There is nothing wrong with the company (on the contrary, last quarterly results were quite a blast), but taking some money off after a big runup and little in the way of immediate obvious triggers to take it even higher seems a good idea to us.

Tags: FSYS