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FLS -

Seems it's my best buy in the last few months. Even last week is was up when the whole market was down. They hit a valley in '03, but are on a steady drive upwards towards their 5 year high.

Website: http://www.flowserve.com/

They do a lot of pump, valve and pipeline work for many industries, but what interested me about them is that they have secured contracts in China for coal liquifaction and gasification plants and I believe that with dwindling supplies of conventional crude that coal is the next step in energy.

Anyone else have this stock? The analysts are saying to hold, but I may buy more. Anyone have an opinion?

http://money.cnn.com/quote/quote.html?shownav=true&symb=FLS
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You saw the news about the CEO resigning a couple weeks ago after being charged by the SEC? You've heard about FLS restating their financials? The haggas has been hitting the fan for a couple years.

The bulk of FLS's business comes from the chemical and petro markets. Anything from Chinese gassification/liquifaction operations will be fiddling small change in comparison for years.

I used to work for one of FLS's predecessor companies way back in the 70s. At that time, I was the "clean fuels" guy in marketing when US coal conversion and shale oil was being widely talked about. There were several projects in various stages of development, and the company had the contract from Bingham Willamette for seals for the Clinch River fast breeder primary circ pumps.

OPEC dropped the price of oil. The clean fuels projects became uneconomic. The Clinch River breeder was cancelled. Reagan became President and energy independance ceased to be a priority.

Even if the company had sold every seal on every clean fuels project they bid on, the total business would have paled compared to the every day business from the existing chemical process industry.

Steve
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Thanks for the info. I don't have much stock in them, it's just that I've had them for a few months now and they are outperforming everything else I have. I'll look into them further before buying more. The only ctiticism that I have of what you said is that it appears that OPEC has lost control of the price of oil this time around so the circumstance seems a little different this time than in the 70s with regard to alt energies. OPEC couldn't drop the price of oil enough this time. It appears the only reason oil has been dropping in the last couple weeks is because of rising US inventories, not because of OPEC production increases. In fact, the market completely shrugs off promised OPEC increases lately. I figure, I'll hold what I have and watch these guys to see if the start getting US contracts or Canadian contracts in coal, shale and tar.
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