I am a new investor and have been watching fuel-tech for about 3 months. Two questions. Does fuel-tech technology directly help cut down on green house gases which contribute to global warming? I have'nt read any literature that has convinced me of that and I do understand that (according to what I have read) nobody is claiming that it does. Also, is this a stock that I should gobble up if democrats take control of this country.
FTEK doesn't really have any product that reduces CO2 in any way. Their products are mainly focused on reducing NOx and SO3, which I believe aren't classified as green house gasses, but they pollute a heck of a lot more, IMO. SO3 is the stuff that causes acid rain.
However, FTEK technology does make coal fired power plants more efficient, so in theory that would cause less coal to be burned, and less CO2 to be emmitted.....right? Maybe someone who took more than freshman science in college could help explain better!
FTEK is a stock worth owning but not at this price. Buy in at 15$. Ultimately, this is a 30$ stock in 2 years. FTEKs business model caters to reducing pollutants from the #1 energy consumed product, that is coal. Ah.. Black Gold.
With domestic and international environmental standards increasing FTEK only stands to gain. Right now their competition is minimal, their technology is great, and fundamentals are awesome. FTEK will beat again this quarter. Having secured deals in Asia, their presence will only increase in the highly polluted continent.
What you can do now?
1) Wait until FTEK is back down around 15. 2) Buy now, go long. 3) Buy CECE which is at an undervalued 10$, has greater presence in the Asian market, and will completely blow numbers away this quarter.
I agree this stock has significant potential on its own merits, and I don't think it will hurt FTEK a bit if the Democrats gain some power in Congress.
I'm curious as to why you have set the buy price at $15. Looking at the chart, it looks like it is coming out of a cup base with a sloppy handle that would put the buy price more like $16.50 if it was breaking out. Although it looked like it might break out on 10/6, it stalled and has flattened out around 17.30. This may represent some additonal consolidation. Assuming there is good news soon on the previous quater's results, I don't think FTEK will hit 15 again anytime soon.