Fuel Tech Inc. (Nasdaq:FTEK) provides proprietary technology that reduces nitric oxide emissions and other toxic chemical materials in industry, utilities and municipalities. This is a company that, in the midst of a "green" revolution, has the technology and the financial strength to succeed.
Fuel Tech recently announced that it was selected for a $1.3 million feasibility study by the Liaoning Environmental Protection Bureau (LNEPB) in the People's Republic of China (PRC). With China growing rapidly and toxic wastes becoming an ever bigger problem, this recent announcement bodes well for Fuel Tech, as there are few Chinese governmental or private companies in this much needed growth industry. Fuel Tech is strongly positioned to profit from this situation in China for years to come.
Fuel Tech has tremendous long term prospects with a much needed technology and in fast growing markets. This is a classic growth story. Revenues from 2005 to 2007 have increased an impressive 52% and pre-tax profits for the same period have increased an astounding 72%. The Company generated $80.3 million in revenue and $7.2 million in net income ($12.4 million in pre-tax profit) for the full year 2007. Fuel Tech continues to achieve record profits in 2008, as they reported their first quarter revenues (March 31, 2008) at $20.5 million, up 26% from $16.3 million in the comparable period in 2007, and net income of $1.6 million. The Company had $34.6 million in cash and cash equivalents for the first quarter 2008 with very little debt.
Fuel Tech closed at $20.92 on June 25th, down 42.5% from its fifty-two week high of $36.38.
Fuel Tech is a dynamic growth company in a dynamic market, which continues to win new contracts, is aggressively expanding globally and has a technology tailored for the future needs of society. When that combination occurs with a dramatic drop in stock price, that usually signals rewarding long term returns for investors. This is a terrific "green" stock that belongs in a well diversified growth portfolio.
Reference:
http://www.ftek.com/
Company 2007 Annual Report
Company 2008 First Quarter Results
User comments
good recommendation but only for people that can stomach some pain before the company makes true inroads in China and beyond.
there is a growth story here and a huge with a short position, there is a possibility of a nice run up.