This Stock Gained +128% and Has Another +94% of Upside

Click here to go back to the newsletter archive

This cutting-edge company raised its guidance for the last three quarters and still could gain +94%.

Tuesday, January 13, 2009

Volume 3, Issue #2

Printer-Friendly | Whitelist Us

This Stock Gained +128% and Has Another +94% of Upside

-- By Nathan Slaughter, Editor, Half-Priced Stocks

It's hard to believe that a company in the automotive sector grew revenues by +60% last year and is poised for even more growth. But Fuel Systems Solutions (FSYS) makes its money on the cutting edge -- supplying the alternative fuel vehicle market.
(Full Story Below)

Also in Today's Issue...

Texas Snowboarder Reveals "Secret Code" for Making Millions

It was in a cabin in the Texas desert where this snowboarder cracked what appears to be the "secret code" to Wall Street's millions -- a formula that made him $1,000,000 in just 3 years.

Thousands of investors who have followed this "secret code" have pulled in returns of up to +2,000% and more.

Now it's your turn.

"Fed Approved" Bank Expects Earnings to Spike +38% Next Year

You don't have to worry about the threat of bad loans with this bank. The government says it's healthy enough to survive two more years of bad economic conditions without a penny of new capital. And best of all its preferred shares yield 10.1%. With this bank you could have the rare opportunity to collect a safe, double-digit yield and benefit from the company's growing earnings.

Don't miss out on what it does in the next 12 months.

Get the report on this bank now.

This Stock Gained +128% and Has Another +94% of Upside

Note: Starting today, we'll be issuing TopStockAnalysts Digest twice a week, on Tuesdays and Fridays, in an effort to provide our readers with more timely investing ideas and opportunities.

At first glance, the idea of using natural gas as an alternative form of fuel may seem to be counterintuitive. After all, it's still a fossil fuel. But natural gas burns far cleaner than ordinary gasoline or diesel fuel and cuts down dramatically on emissions. In fact, the EPA has named the Honda Civic GX, which runs on compressed natural gas (CNG), the "cleanest internal combustion vehicle in the world."

From an investment standpoint, the evolution of natural gas vehicles is at the perfect stage -- established enough to reach critical mass, but with years of growth still ahead.

California-based Fuel Systems Solutions (Nasdaq: FSYS, $29.79) designs and sells a wide array of components for use in vehicles that run on alternative fuels, most notably propane and natural gas.

As you might expect, these internal combustion engines require their own specialized equipment, and FSYS is the world's top supplier of fuel injectors, flow control valves and other necessary parts. Thanks in part to a network of over 400 distributors that spans 60 countries, the firm has amassed a dominant market share three times the size of its next closest rival.

According to the Natural Gas Vehicles Association, there are roughly 50 different manufacturers assembling all types of CNG-powered vehicles -- everything from fork lifts to garbage haulers. Believe it or not, there are already 150,000 of these cars and trucks on the road today, along with 1,600 refueling stations. Most of those are currently concentrated in states like Utah, where prices run the equivalent of less than $1 per gallon.

At this point, most CNG vehicles belong to commercial fleets, such as taxis and airport shuttle busses. But I expect to see many more parked in garages around the country in the near future. They are clean, efficient, and relatively inexpensive -- particularly after generous tax credits are accounted for.

Special Offers

Get Investor's Business Daily FREE for two weeks.
Learn More

Risk free trial of our live e-mini futures trading room.
Learn More

Furthermore, billionaire industrialist T. Boone Pickens has been saturating the airwaves with commercials for the "Pickens Plan" -- which involves tapping the nation's massive natural gas supply for transportation rather than electricity, and then making up the power grid shortfall with wind generation. This publicity has increased public acceptance for natural gas-powered vehicles as a way to break dependence on foreign oil.

Unlike many cash-strapped alternative energy companies, FSYS is enjoying healthy revenue growth and churning out growing profits.

In the first quarter of 2008, management confidently raised its full-year sales forecast to $320 million and predicted gross profit margins to hit 24%. After the second quarter, the company increased its revenue guidance to $350 million and expected margins to touch 27%. And now after the third quarter, management has boosted expectations yet again, with the latest outlook calling for sales of $385 million and margins of 29%.

So despite tough economic conditions, FSYS has raised its guidance -- three times in the past three quarters. Meanwhile, revenues have climbed +60% for the year to $298 million, and earnings have surged from $0.07 per share to $1.44 per share -- consistently crushing analysts' targets.

With accelerating sales growth and profits surging 20-fold, you might expect the shares to have gained ground, and they did for the first half of the year, marching from $10 to a peak above $60. However, they have since slid back into the low $30s, providing an attractive entry point for investors interested in this promising company.

While just about every other stock plunged last year, FSYS rewarded shareholders with a nice +128% gain. But with a fair value of $58, the shares still offer attractive upside potential in excess of +94%.

Alternative fuels continue to gain in popularity for a variety of reasons. Natural gas is abundant, economical, and environmentally friendly. There are already more than 8 million vehicles equipped to run on CNG operating around the globe -- still just a tiny fraction of the world's total.

As the industry leader, FSYS looks to be a major beneficiary of this continued momentum, as well as Obama's well-known support for cleaner transportation initiatives. The company will convert more than 800,000 vehicles to natural gas this year and has just unveiled plans to launch a new automotive division in the U.S.

-- Nathan Slaughter
Editor
Half-Priced Stocks

Triple-Digit Yield Growers

Like the rest of the market, income securities have taken a big hit, leaving many investors scrambling for higher yields. But not everything has been decimated. Which of these securities groups has witnessed a +151% increase in dividend yields between 2007 and 2008?

A.)  TIGRs
B.)  Preferred stocks
C.)  General partnerships
D.)  TIPs
E.)  Utility stocks

(Please click on one the links above. After you make your choice, we'll show you the correct answer on our web site.)

Nathan Slaughter
Co-Editor
TopStockAnalysts Digest

Paul Tracy
Co-Editor
TopStockAnalysts Digest

TopStockAnalysts
http://www.TopStockAnalysts.com
839-K Quince Orchard Blvd.
Gaithersburg, MD 20878-1614

P.S. -- If you're not already a subscriber to one of StreetAuthority.com's premium investing newsletters, which include a wealth of additional information and specific investing guidance that you won't find anywhere else, then please visit the following page to learn more: http://www.StreetAuthority.com/subscribe.asp

TopStockAnalysts Digest Web Site Content...

.

Newsletters/Archives

Customer Service

You are receiving this newsletter because you visited us at TopStockAnalysts.com and registered to receive our complimentary biweekly investing newsletter -- TopStockAnalysts Digest. If you feel you have received this issue in error, please follow the instructions below to unsubscribe or contact us by visiting our web site.

If you are interested in advertising in this newsletter, or on our web site, please visit this link.

This message was sent by an automated message delivery platform. Please do not reply to this email address. Any messages sent to this address will be automatically deleted. We sincerely hope that you benefit from your subscription to this complimentary newsletter, and we're willing to do whatever it takes to keep you as a satisfied customer. However, if at any time you wish to discontinue your subscription, you can do so by simply visiting this link and confirming your request, or by calling (301) 216-2005.

Please note that TopStockAnalysts is not a registered investment firm or broker/dealer. Readers are advised that the material contained herein should be used solely for informational purposes. TopStockAnalysts does not purport to tell or suggest which investment securities members or readers should buy or sell for themselves. Site users should always conduct their own research and due diligence and obtain professional advice before making any investment decision. TopStockAnalysts will not be liable for any loss or damage caused by a reader's reliance on information obtained in this newsletter or on our web site. Our readers are solely responsible for their own investment decisions.

The information contained herein does not constitute a representation by the publisher or a solicitation for the purchase or sale of securities. Our opinions and analyses are based on sources believed to be reliable and are written in good faith, but no representation or warranty, expressed or implied, is made as to their accuracy or completeness. All information contained in this report should be independently verified with the companies mentioned. The editor and publisher are not responsible for errors or omissions. Any opinions expressed are subject to change without notice. Owners, employees and writers may hold positions in the securities discussed in this report or on our web site.

Copyright 2001-2009 TopStockAnalysts. All rights reserved.
Unauthorized reproduction or distribution is strictly prohibited.