Fuel Tech has recently announced its expansion into China. Analysts expect its earnings to rise to $0.42 cents a share in 2007, from an estimated $0.27 cents in 2006, thanks to more contracts with utilities in Europe and the U.S.
The company has no debt and it is cash flow positive, and 20% of the total float of FTEK shares is currently being shorted. The stock has pulled back sharply in the last few days, and is currently sitting just above its 200-day moving average.
Back in December, I posted a bullish piece on Fuel Tech. With earnings out this morning, I recommend watching the price action, and buying around the $26 level.
Full Disclosure: I am long FTEK but my position can change anytime without notice.
FTEK 1-yr chart: