Flowserve (FLS) is one of my favorite names but increasingly it is apparent that it might as well be called
Flowserve Natural Gas or
Flowserve Fertilizer. As we keep saying, to the hedge funds this is all 1 big stock - a swatch of 150-200 stocks are all the same. They all either go up, or down and there is no discerning in individual names. Despite raising guidance by $1.25 the stock has lost over a third of its value as a reward. Once more until fundamentals are rewarded, and you need to know more about the companies background than which hedge fund owns it, I find this market
quite useless. So we're liquidating name by name - at this point I might as well just own one fertilizer or coal stock since its a proxy for 200 other names.
Technically we have a decent bounce today to $105, I could see it go to $112 and then the chart say its a short. I went through all the global growth/commodity charts last night and each one looks identical. It is truly amazing - the name at the top of the chart is truly
irrelevant.
We'll be back in this name later in the year or in 2009 when the forced liquidations are done. With the company increasing guidance, the analysts have now taken 08 estimates from $6.31 to $7.63 for 2008 and we now sit in the name with a forward P/E of 14. Considering we have other names at forward PE of 7 I suppose this is still and overbloated valuation. :)
EDIT: We
lost $2200 on this position.
No position
