Fuel Tech, Inc. (FTEK)

SARdMc (88.60) Submitted: 7/18/08 10:25 PM : Start Price: $18.30 FTEK Score: -2.71

As long as the world is burning coal for electricity there will be a need for the products of Fuel Tech. There just seems to be a tremendous amount of potential for these products. There are certainly some near-term headwinds but management is 1st class in my opinion. The stock recently got punished because of court ruling regarding CAIR. Management scheduled a conference call first thing the next morning to outline the impact that court ruling would have on business. It appears from the conference call that the impact will be negligible and may actually benefit the company in the long run. It was just another example of this schitzoid market overreacting. Sales are growing in the US and the company is just starting to break into the China market (heaven knows they certainly need to clean up their air). A lot of people think this stock will only do well if our government forces the utilities to stricter emission standards but studies are showing that the product actually makes the utility more efficient and increases their margins. There appears to be a growing sentiment for utilities to use these products not because they have to, but because it is good for them to use them. A win-win.

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