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Strategies & Market Trends : Point and Figure Charting -- Ignore unavailable to you. Want to Upgrade?


To: HoodBuilder who wrote (15744)3/16/1999 7:04:00 PM
From: Sergio H  Respond to of 34811
 
Michael, thanks for your comments on USF. The stock has run up and is having trouble breaking out of the mid 20s, but I think that there are catalysts that will help this stock break out.

New management team with a new strategy aimed at reducing debt and improving the bottom line. USF was hurt by the financial problems in Asia and South America. Asia is showing signs of coming out of the doldroms. The semiconductor industry,that USF has entered directly, as also been showing positive signs. USF will benefit from expansion of the semiconductor sector (it appears that everything is going to end up with a chip inside) both directly and indirectly as pure water is necessary for chip production.

Cities will be giving more attention to modernizing municipal water supply systems that are in many cases over 100 years old. USF will get its share of this business.

The recent Australian company that they acquired has a unique technology that allows for recycling of water without the use of chemicals.

The underlying factor is that water is becoming more and more precious and may soon begin trading as a commodity.

Other interesting stocks in this sector are ION and OSM.

AS