I agree it is becoming more difficult to predit upcoming strong sectors and stocks. FLS, POT, X, CF etc all are "estimated" to earn great EPS this year and next. Still these stocks are selling off. Some are calling it a demand destruction or peak.
Money is going into Financials and other beatn down seectors even though stocks in these will loose money, but better than estimates.
FLS is a great stock with great earnings. But.....as I said above, it is all about Big money. Where Big money goes, so does the stocks.
Seems like hedge fund short attack disguised as sector rotation IMO. HF facing huge losses and need to unload holdings to meet margin call and redemptions. They short at same time and drive it as low as they can before they buy back. They have the big $$ and programs to to it. See it happening with ag and shipping stocks. Infrastructure and commodities are long term plays and far from over. Not afraid to hold here. Excellent earnings report. My only fear is that analysts start to overestimate results as FLS keeps beating and raising.
that tells me that FLS is going to be a darling again..
$135 is cheap.. taking a page from other posters, the margin increases and the mention that FLS has no trouble passing on costs to end users is materially significant.
i see this as a blip on the screen... you need to remember that a lot of the funds owned this stock in the 70's in Dec, and are taking profits, but by no means have given up... they are just taking advantage of the down trend to adjust, but will buy more... they wont exit until the earnings stop going up... and according to the last qtr, that isnt happening until many years from now...
its a good time to get in...its a bit bumpy, but its a solid place to hide in the turmoil
well according to my calcs, that is a downgrade...
according to the article, in June FLS was trading @ $129 on $6.24 earnings.. a 21 PE.. and now that earnings have been recorded, and numbers raised, we will be earning $7.20 (low end) and trading @ $120, a 16.6PE.. so his raise of $11 doesnt even cover the guidance raise, and i would consider this a downgrade..
a real raise would have been a consistent call of a 21 PE ($151 @ minimum) for the new guidance making note that earnings guidance could be raised again, and that 2009's numbers will be re-evaluated..if he loved it in June @ $129... then he should be wetting himself with the opp to buy it under $120...
next qtr 2009's numbers will have to be addressed, and i expect that FLS will say about $13-$14... we'll see
its been hard to watch lately
just another ridiculous call by a salaried analyst...