FTEK is not for the faint hearted. It sports a very high valuation and its price/volume action demonstrates plenty of volatility. However, considering that democrats are against big oil and pro environment, Fuel Tech is poised to stay in favor for a while, although, it is a stock completely levered to market's momentum. Over the next couple of weeks, those who own it will make money, but the stock is up too much too quick (support is at $18) to be a core long term holding. I bought the stock yesterday after I sent the note to readers, but its a small position and is meant to catch the quick move I expect between now and the end of the year. Though the stock grew at 90% this recent quarter, it is one of those small-cap, high growth, momentum plays that can turn on you at anytime.
For those that are shorting it, watch out. You will get burnt.
-- Faisal Laljee
Full Disclosure: I own shares of FTEK, although my position can change anytime, without notice.
3 comments:
this stock has run up with no regards to valuation. i wished i knew the sweet spot for the short, its gonna be good.
dude, what are you doing? this is way to pricy and your on to this story a bit late. did you see how this thing tipped over 10%+ on thursday, a good index day.
have you seen the help yourself insider sales lately? what about the PE? there is plenty of tech stuff out there without all the bs.
I hope you haven't shorted it. You are getting killed if you did.
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