Monday should be a very interesting day for FSI. I think that the price move yesterday was in anticipation of the earnings.
Now, for what I am about to say, many of you fellow FSI thread followers will think I have lost my marbles. But, here it goes. I personally believe that we will see FSI hit $30 in the next several months. For several reasons. First, technically, it looks to be the next threshold to take this stock to the next level. Second, the industry is now just heading into its next big upturn and, I believe that FSI's earning for next year at .77 were under estimated. My bearishness on this stock in the recent past was because it appeared that no one was interested in this stock and FSI was doing nothing to help their case. With recent annoucements from them and the momemtum in the stock and industry, my thoughts regarding that have changed.
At this point I believe this stock is now "In Favor" and we will start to see additional institutional money go into this stock. Remember, what FSI said last quarter. I believe that a lot of the big money is waiting til this quarter is over to see FSI's position for the future. At that point they will start buying.
The all time high for this stock is $38. Many of the semi equipment stocks have surpassed their highs in the last several months. FSI has not. That alone does not mean they should. But with increased bookings, a market just now entering its upturn, and my belief that the earnings forcast is low, this stock will reach new highs in next year.
Remember in 1995 FSI did $1.25 a share. Now, I realize that since that time they have taken on more debt by doing expansion for the NEXT BIG RISE IN THE SEMI MARKET. But, they are in position to do approximately $600m in business. I don't know for sure what the earnings would be. But, if they do $400m next year, I have got to believe that earnings would at least $2.00 a share. That would give us a stock trading in the range of $50 to $60 a share in the next year to 18 months.
Lastly, had dinner with a friend last night who works in the product area at FSI. I asked him if this guy was buying the stock right now. He said that his friend told him he has been and will continue to buy as many shares as he possibly can. Bottom line is the guy believes in the company and what it is doing (Take it for what it is worth). But, I will probably buy more shares again on Monday morning. Yes, it may and probably (knowing my luck) will go down some after earnings come out. If it does, I will buy more. I am going to keep accumulating this stock until it hits $30 and assess the situation again.
Enjoy the ride. It is about time.
Thank goodness I got smart and bought the shares back that I had sold last week the next day. Got to nervous. I thought something like this would happen where the stock would start to move up again. |
