Saturday, August 4, 2007

Fuel Tech Inc.

Fuel Tech Inc. is a NASDAQ listed security that has been trading in a range between $10.93 and $38.20 over the past year. With 22,198,700 shares outstanding, a recent price of $28.61 gives a total market capitalization of $642,208,398. While there are certainly larger companies, Fuel Tech Inc. has definitely earned its place in the pack. Last year, Fuel Tech Inc. created $0.26 in earnings for every share outstanding.

Fuel Tech Inc. is currently priced by the market at 111.20 times last year’s earnings. Many trading multiples around the world are quite attractive these days, but don’t be fooled. A Price to Earnings ratio of 0 simply means that the security didn’t make any money last year.

With a share price under $50 a share and earnings per share below $1 a share, Fuel Tech Inc. could be an interesting value proposition. Consistent earnings are the key to high valuations and this security is well on its way.