BTUI

[David Randolph]

BTU International, Inc. (BTUI). The Group's principal activities are to design and manufacture thermal processing systems used in packaging semiconductors and printed circuit boards. The products include solder reflow systems supplied to the electronics original equipment manufacturers and contract electronics manufacturers. They also include high temperature systems, applied into the manufacture of the ceramics. The users of these products manufacture the high-density printed circuit boards and semiconductor packages used in the advanced electronics industry. The products are also used for the sintering of ceramics, metal brazing and the deposition of thin film coatings. Major customers of the Group include electronic manufacturers like Motorola, IBM, Intel Corporation, Solectron Corporation, Silicon Precision Industries (SPIL), Advanced Semiconductor Engineering (ASE) and Celestica Incorporated.

I don't have much time to dig through fundamentals, but I've superficially checked them (I took about the same time to conclude I want to buy this stock than I would to buy a new refrigerator, so it's allright  )

Fundamentals look attractive, as you can read on the link below:

BTU International Reports Second Quarter 2005 Results; Net Income up 360 Percent over Previous Quarter

With a market cap of just $59.23M I estimate that the company has a price to sales ratio of about 1, which is below average its industry group.

Technically speaking, the stock had enormous volume yesterday (volume analysis is always relative to recent past, there's no high or low volume, 5 million shares traded can be low for a stock and 100 thousand can be a lot for another, and that changes with time too. More on Volume analysis this weekend on our Knowledge Center)

Yesterday's high volume suggests me the stock will break an ascending triangle formation on the upside, which will give me a technical target of $10.95 in about a month. If you want to know how the technical target is calculated just ask and I'll answer on the first update of this analysis this evening after the close.

So I'm buying BTUI at today's open or near, 6.66% of the 3 Stocks on Fire Portfolio as usual.

(This recommendation was made by David Randolph from 3 Stocks on Fire, and he will update this analysis everyday after the close until he sells the stock. 3 Stocks on Fire is a Community of stock traders and investors. Our 2987 members exchange trading ideas and strategies on our message boards everyday. We welcome you as a new member of the 3 Stocks on Fire Community, please take 10 seconds to register and receive our free newsletter)

[REALDEALS21]

I will be the FIRST !

Hey, David, how is the techical target calculated ?

Thanks ! 

[David Randolph]

I will be the FIRST !

Hey, David, how is the techical target calculated ?

Thanks ! 

Hello RealDeals21, it's really easy. You take the high and the low of the triangle formation. The high was $8.18, and the low was $5.41. In the case of an upside breakout, you do the following math:

$8.18 - $5.41 = $2.77 and then you had this value to the resistance level that was taken out on the upside, so $8.18 + $2.77 = $10.95 is your technical target of the breakout.

Now, considering BTUI, there was no breakout, was it? The stock failed to breakout due to general market weakness. I don't like much of selling so soon after I buy a stock, but I'm selling BTUI today because of this:

Global Market Bearish Call

[stocky]

David, does Friday's action lead you to believe that it was a breakout?

I understand your reason for selling BTUI and I would have done the same had I have access to internet at that moment but could not do so and now sitting on some unintended profit

[stocky]

Just livelife scriptposting may have put my post underwater, so again would say

David do you think that Friday's action in BTUI could be called breakout?

[Amarens]

Is anybody still keeping an eye on BTUI? Like you stocky I was not behind a computer and had some unintended profit, which I took  . But I also decided to get back in. To hi now it appears... Should have left it at that    But...

Still believe in the potential of this stock, which David mentioned in it's original reasoning. Considering now to fill up more, which is still more based on the news on BTUI in the recent past. TA does not support that decision in my opinion which makes me doubt  . Can anybody help me out on the TA on BTUI?

Looking forward to some opinions

[Amarens]

Didn't get any replies     BUT I bought more and sold just now. Got a nice profit out of it again  . Went up fast two days in a row. Since I would have never known about this stock without 3SOF a new donation is on the way. Thanks 

Amarens

[Se7en]

... Since I would have never known about this stock without 3SOF a new donation is on the way.

Are you sure you are Dutch?!
Just kidding!

[Richard]

BTUI is another stock I currently own...this one, along with SNAK, seem to just be moving steadily upward.

Today I pondered selling BTUI as it looks ready for another dip, but each dip seems to move it yet higher, cycling up and down within the same basic upward trend.

Any revised thoughts on BTUI? Is 10.95 still a reasonable target?

[Richard]

Forgot my little charty chart chart...

Considered selling because it looks like another peak, yet my plan going in was to hold until I see the overall pattern change



Thoughts?

Richard

[Richard]

Well, it looks like sticking to my guns was the right call...

Hope everyone is having a profitable day

[la-onda]

BTUI up today!

BTU International Reports Third Quarter 2005 Results
Thursday October 20, 6:30 pm ET
Net Income Doubles over Previous Quarter on Sales of $ 18.5 Million

NORTH BILLERICA, Mass.--(BUSINESS WIRE)--Oct. 20, 2005--BTU International, Inc. (Nasdaq NM: BTUI - News), a leading supplier of advanced thermal processing equipment for the Electronics Manufacturing and Energy Generation markets, today announced its financial results for the third quarter ended October 2, 2005.

Net sales for the quarter were $18.5 million, up 17 percent compared to $15.8 million in the preceding quarter, and up 20 percent compared to $15.4 million recorded in the third quarter of 2004.

Net income for the 2005 third quarter doubled to $1.6 million, or $0.20 per diluted share, compared to net income of $770,000, or $0.11 per diluted share, in the preceding quarter, and compared to a net loss of $2.4 million, or $0.33 per diluted share, reported in the third quarter of 2004.

Net sales for the first nine months of 2005 were $47.1 million, an increase of 15 percent compared to the same period last year. Net income for the nine months ended October 2, 2005, was $2.5 million, or $ 0.34 per diluted share, compared to a loss of $4.3 million, or $0.59 per diluted share, which included a one-time restructuring charge of $1.6 million, or $0.23 per diluted share, for the first nine months of 2004.

"Both the PC Board Assembly and Energy Generation markets were stronger than expected top line contributors to our third quarter. Overall, our improved performance is based on implementing our strategy to focus on the key sectors of our markets coupled with increased operating efficiencies," said Paul J. van der Wansem, chairman and chief executive officer of BTU International.

Outlook

"We will continue to expand our global organization and capabilities. The Electronics Manufacturing markets show continuing strength, with the Energy Generation markets signaling significant future potential for growth. Revenues for the fourth quarter are expected to be similar to the robust performance in the third quarter," concluded van der Wansem.

[valueseeker]

Not a lot being said about BTUI, but it has been growing steadily and doubled since Dave bought & sold it at $8. With it's growth rate, I see $20 short term and long term another double from here. This has just became my 5th largest holding!

[Richard]

I'm still holding it as well

I just keep moving my stop up, and it never hits it.