Rofin-Sinar Technologies (RSTI)

binv271828 (< 20) Submitted: 5/31/08 7:48 AM : Start Price: $35.05 RSTI Score: 14.97

"You know, I have one simple request. And that is to have sharks with frickin' laser beams attached to their heads". ... I believe RSTI is looking into that.... uhhh.

RSTI builds industrial cutting and welding lasers. This is an extremely useful technology as it speeds up machining production, particuarly for large parts that are difficult to traditionally cut. They have a variety of laser types (YAGs, C02, diodes) for a variety of applications (industrial cutting and welding, and high precision, and jewelry making). They also have a very strong international presence. This is good for any company these days.

PE of 18 is high on the EPS growth of around 12. They have had a few misses and their stock is back down around their 6 month low. However they are generating lots of FCF and they have no debt. I think their niche is a good one. I think they are still poised to take advantage of the growing world economy. Growing economies need materials, and these materials have to be processed.

Plus lasers are just cool :)

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