Upside to FSYS looks extremely limited

Fuel Systems Solutions: Third Quarter Blowout Is an Understatement

Okay, FSYS had a great quarter - but we're dealing with relatively small numbers here. If you compare how they did this quarter vs. the previous quarter - seasonal adjustments notwithstanding- you can see that the company's revenues have leveled off somewhat. Revenues increased a whopping $7 million - from 98.3 Million in Q2 to $105.5 Million in Q3. This is for a quarter that happened to a large extent before the full curtain of the financial crisis revealed the tragedies to come. Guidance for 2008 has been increased significantly - but unless cost cutting becomes greater at the company I think this is the top of earnings for the next several quarters. I find it hard to believe that any region - especially Europe and Asia where FSYS's growth seem's most pronounced - is going to be ramping up their industrial transports/fuel efficient vehicles/conversions significantly. Europe is more likely to cut back if anything considering the headwinds they are facing. FSYS will survive and prosper but it's short-medium term growth prospects expecially for the stock should factor in a long drawn out recession. I don't see this stock going much higher than $45. Reality bites.