bt310

Monster Rally Produces Pricey Valuation for Fuel Systems Solutions

After being long FSYS, I too have shifted my thinking. With oil prices plunging, the cost benefit/per gallon has tightened, making the impulsive jump towards a life-changing decision less likely. People are stuck in their ways and paying $4000-10,000 for a conversion and another $2,000+ for a home "phill" hookup(regardless of tax credits) makes the possibility of change remote. In Southern California, there are several NG Stations, but most involve more waiting, driving out of the way and planning your day/trips regarding where the closest CNG stations are.
Hybrids don't involve such a drastic change, yet the percentage of people buying them(sans environmentalists) is small.
While I like their earnings, I too believe that this rate of growth should shrink. State restrictions emphasize buying new CNG Vehicles and conversion kits are highly regulated. You can't install one yourself. I think FSYS will continue to grow earnings/revenue, however, at this share price, it is overvalued. Momentum traders, IBD readers are taught to not chase stocks-especially when they're 25% above their buy-point or 50 day moving average. Anyone who bought below 40 will soon sell and those who bought above 50 will come to their senses when buying pressure wanes.