7/22: FLIR Systems beats handily; raises full year guidance (FLIR) 55.34: Reports Q2 (Jun) earnings of $0.50 per share, $0.11 better than the Reuters Estimates consensus of $0.39; revenues rose 58.7% year/year to $119.3 mln vs the $111 mln consensus. Co raises full year guidance as follows: revs and EPS now seen at $470-$480 mln and $1.88-$1.98, up from prior guidance of $425-$435 mln and $1.55-$1.60. Consensus is $447.5 mln and $1.63.
Erlanger Squeeze Alert
#162, July 19, 2004
In our situational portfolio for this week, we are initiating a long position in Flir Systems (FLIR - $55.91.) They will be holding their earnings call on Thursday before the open and it is a Type 1, Short Squeeze. Flir Systems designs, manufactures and market infrared and thermal imaging products to the commercial, industrial and government markets. Recently, Flir purchased Indigo Systems who produced infrared detectors, cameras and camera subsystems.
The Erlanger Short Intensity Level for is 78% and sports an Erlanger Short Ratio of 6.43. Our Erlanger Technical rank is at 90% making this a perfect long candidate. For the current year, Flir is expected to earn $1.63 and it should earn $2.02 next year. In the past ninety days, estimates have risen for 2004 by .07 cents and .09 cents for 2005. There is room for upgrades as there is 1 strong buy recommendations that currently exist along with 4 buys and 9 holds. The Erlanger Short Interest Ratio has risen three of the past four months.
Flir should benefit from increased sales due to increasing security concerns on the government and corporate level. Flir's Indigo division just picked up a $7.4 million contract from Northrop Grumman for infrared cameras that will be used on B-52 and F-16s. Flir also just picked up a contract from SAIC for $6.3 million. The recently announced $10 billion Homeland Security Bill should also benefit Flir. With General Electric's recent acquisition of Invision, it could be a natural for General Electric to pursue Flir next. Competitors Kroll and Andover Controls recently were taken out by larger competitors. Short sellers have not been having a good time with this stock. It seems with estimates increasing, new contracts coming in and potential suitors on the horizon any positive news could send the shorts scrambling once again.
Erlanger Squeeze Alert
#162, July 19, 2004
In our situational portfolio for this week, we are initiating a long position in Flir Systems (FLIR - $55.91.) They will be holding their earnings call on Thursday before the open and it is a Type 1, Short Squeeze. Flir Systems designs, manufactures and market infrared and thermal imaging products to the commercial, industrial and government markets. Recently, Flir purchased Indigo Systems who produced infrared detectors, cameras and camera subsystems.
The Erlanger Short Intensity Level for is 78% and sports an Erlanger Short Ratio of 6.43. Our Erlanger Technical rank is at 90% making this a perfect long candidate. For the current year, Flir is expected to earn $1.63 and it should earn $2.02 next year. In the past ninety days, estimates have risen for 2004 by .07 cents and .09 cents for 2005. There is room for upgrades as there is 1 strong buy recommendations that currently exist along with 4 buys and 9 holds. The Erlanger Short Interest Ratio has risen three of the past four months.
Flir should benefit from increased sales due to increasing security concerns on the government and corporate level. Flir's Indigo division just picked up a $7.4 million contract from Northrop Grumman for infrared cameras that will be used on B-52 and F-16s. Flir also just picked up a contract from SAIC for $6.3 million. The recently announced $10 billion Homeland Security Bill should also benefit Flir. With General Electric's recent acquisition of Invision, it could be a natural for General Electric to pursue Flir next. Competitors Kroll and Andover Controls recently were taken out by larger competitors. Short sellers have not been having a good time with this stock. It seems with estimates increasing, new contracts coming in and potential suitors on the horizon any positive news could send the shorts scrambling once again.
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