Monster Rally Produces Pricey Valuation for Fuel Systems Solutions

I didn't expect to be writing about Fuel Systems Solutions (FSYS) again, especially the day after completing my previous piece. I anticipated that Thursday's news would propel shares nicely higher, but I was totally blindsided by the intensity of FSYS's  rally. I mentioned earlier not to even contemplate selling shares before the $50  mark was reached.

Who would have ever imagined that the share price would swell almost 29%, exceeding my target price in a single trading session?!  I suppose Friday's 300 point Dow rally didn't hurt matters either. What makes Friday's massive appreciation even more striking is the fact that it occurred despite FSYS issuing 2008 revenue guidance that was $4.9 million below analyst expectations of $354.9 million. Before, I was bullish, and now, I'm bearish. My flip flopping is simply a function of valuation, as the soaring share price has rendered this stock too expensive.