Bob'29

FMC Shares Priced For Perfection - Barron's

From another blog somewhere in the universe:

“What goes parabolically up must come down at least a little”. A trend reversal is where money leaves one sector and rotates or moves into another sector. It looks as though a rotation out of oil and gas has began. There is some potential very big and smart long term money that will be moving back into tech. As the rising tide lifts all boats, well place tech companies like AAPL should see added upward fuel. What might fall hard is an oil services company called FMC Technologies (symbol: FTI) which has recently doubled in price with a current P/E unjustly way above its peers.. Read Barron’s article by Sandra Ward. She points out no fewer than five reasons why the stock may well fall like a mal-attached crane off the top of an oil rig. About eight years ago I first heard the term, “Priced to Perfection” referred to the larger market before one of the worst crashes most living people have seen . Ms Ward uses “priced to perfection” in regard to the price FTI is now trading at (if its not going up anymore….). As the smart money takes profits from FTI; those willing to short the stock may derive a healthy profit. The stock closed the week at $75.55. The author suggests that it might find support at its 50 day moving average which is $66. Of course always use caution when shorting a stock. Remember January when AAPL dropped from $202 to its low of 119? Lets look to FTI and see if it behaves in a similar way