BTU International, Inc. (NASDAQ:BTUI)
CAPS Rating:
The Company is engaged in the design, manufacture, sale, and service of thermal processing systems, which are used as capital equipment in various manufacturing processes in the electronics and alternate energy industries.
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I usually wont bet against a company solely based on valuation, but this is a rare exception. The recent move in BTU International has been almost parabolic to the upside. Decently managed company, but now looking at 27 times future earnings, 3 times book and 6 times cash, all figures well ahead of its historical averages. A more reasonable price would be in the $8-9 range which is also where I'd look for it to pull back to. TMFUltraLong