Forum Energy Technologies, Inc. (FET): Today's Most Compelling Stock Buy

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SoTM Bull's Eye Report - Today's Most Compelling Buy
Wednesday, July 10, 2013

At StateoftheMarkets.com, we strive to "own the best and ignore the rest" in our equity portfolios. Toward this end, each day we search our database for a "top stock" (a top rated company in terms of earnings strength as well as company and industry performance) that presents a strong technical "set up" and a good entry point.

In short, when our equity team is looking to add a stock to one of our portfolios, the "bull's eye" stock shown below is generally their first choice.



Company


Symbol


Industry

Stock
Rating

YTD
% Gain
S.T.
Stop
Loss
Forum Energy Technologies Inc FET Oil & Gas Equipment & Services 7.2 +16.85% $29.61

Why We Like The Stock:

Forum Energy Technologies Inc (FET) is our most compelling buy today due to the fact that it is a top rated stock (in terms of earnings strength and company/industry performance) with a positive technical set-up. Oil & Gas Equipment & Services stocks have had a solid year thus far, as evidenced in charts like Tidewater Inc (TDW), Helix Energy Solutions Group (HLX), Bristow Group Inc (BRS), and FET. FET sports a positive intermediate-term trend, though it consolidates often. This can be seen as a good thing in this market, as it shows that FET isn't subject to hysterical momentum moves. The stock recently hit highs just north of $32 in mid-June, which is a nice +6% short-term upside from current prices. After basing at $30 last week, FET looks to be back on the upswing, crossing above its 5-day moving average this week and pushing the 10-day this morning. FET has also operated well above its 50-day moving average since the beginning of May, which is a healthy indicator. We like FET with a stop just below the 50-day for a run back up to $32 and beyond.
We Would Be Buyers:

At the current price (~$30.20).

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Company Profile:

Forum Energy Technologies, Inc. is an oilfield products company, serving the subsea, drilling, completion, production and infrastructure sectors of the oil and natural gas industry. The Company designs and manufactures products, and engage in aftermarket services, parts supply and related services that complement its product offering. It operates in two segments: Drilling and Subsea Segment and Production and Infrastructure Segment. In December 2012, the Company acquired Merrimac Manufacturing, Inc. (Merrimac). In May 2013, the Company acquired Blohm + Voss Oil Tools from STAR Capital Partners Limited.

Stock Rating:

The Stock Rating indicates the combined score of our proprietary Earning Strength and Company Performance models. The rating scale is 0 - 10 with 10 being the highest.

Disclosure:

At the time of publication the editor and affiliated companies own the following positions: FET

Note: Positions may be bought or sold while this publication is in circulation without notice.

  Forum Energy Technologies Inc - Last 3 Months

  Forum Energy Technologies Inc - Last 12 Months

  Forum Energy Technologies Inc - Last 5 Years

 

 

The analysis and information in this report and on our website is for informational purposes only. No part of the material presented in this report or on our websites is intended as an investment recommendation or investment advice. Neither the information nor any opinion expressed nor any Portfolio constitutes a solicitation to purchase or sell securities or any investment program. The opinions and forecasts expressed are those of the editors of StateoftheMarkets.com and may not actually come to pass. The opinions and viewpoints regarding the future of the markets should not be construed as recommendations of any specific security nor specific investment advice. Stocks should always consult an investment professional before making any investment.

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The analysis provided is based on both technical and fundamental research and is provided 'as is' without warranty of any kind, either expressed or implied. Although the information contained is derived from sources which are believed to be reliable, they cannot be guaranteed.

The information contained in our websites and StateoftheMarkets.com publications is provided by Ridge Publishing Co. Inc. (Ridge). One of the principals of Ridge, Mr. David Moenning, is also President and majority shareholder of Heritage Capital Management, Inc. (HCM) a Chicago-based money management firm. HCM is registered as an investment adviser. HCM also serves as a sub-advisor to other investment advisory firms. Ridge is a publisher and has not registered as an investment adviser. Neither HCM nor Ridge is registered as a broker-dealer.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Investing Ideas , Stocks , US Markets

Referenced Stocks: BRS , FET , HLX , TDW

David Moenning


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