Like Tesla? Then You’ll Love This Stock

Nearly 30% of the more than 20 million outstanding shares are held by insiders, with another more than 45% in institutional coffers. Second-quarter earnings per share rose more than 18%, to $0.13, from the same period last year, beating expectations. Revenue also rose nearly 2%, to more than $111 million.

IMPCO is the subsidiary of Fuel Systems Solutions that focuses on the automobile engine sector. It just obtained the first Environmental Protection Agency (EPA) certification for a 2014 bi-fuel sedan with the Chevy Cruze. Its compressed natural gas (CNG) system is the only EPA-approved bi-fuel system for 2014 U.S. vehicles.

Shares have been in a steady uptrend since April 22 but have hit solid resistance at $21. There is a double-top formation in the $21 area, but solid support is evident at the 50-day simple moving average just above $19.

Risks to Consider: Although a major change is underway in the automobile alternative fuel business, it may take quite some time to fully blossom. Companies in this sector may be volatile in the short term, but patient long-term investors in carefully chosen companies will profit from the shift. Always use stops and position size properly when investing. 

Action to Take –> I like Fuel Systems on a breakout close above $21 with an 18-month target of $32. Initial stops should be set directly below the 50-day simple moving average at $18.

P.S. StreetAuthority’s previous predictions have given investors 89%… 92%… 293%… and even 310% gains in a year. To hear our latest, including how Apple’s next breakthrough could turn the banking industry on its head, click here.