FLS: Pumps, Valves and Seals

Flowserve is at the top of my own 'conviction buy list' right now. At the beginning of November, the company began forming a huge rectangle between $80 and $100. After reaffirming their guidance of $5.10-$5.40 on Feb. 28th and announcing their new deal to be the exclusive provider to Sinopec, the stock broke out to almost $110 before pulling back now to test support at $100. The new rectangle that will be formed should range from here to $120. As for the fundies, sales at the company are growing sustainably with huge demand from Latin America, particularly Brazil, as its sits on top of recently discovered oil reserves in the neighborhood of 500 billion barrells. There is also plenty of demand from the frowing water concern, particularly in the Middle East. Another halo play I like from this story is actually Analog Devices (ADI), whose Blackfin processor is at the heart of a lot of the new flow monitoring systems, but I've yet to see this manifest. Fingers crossed in this treacherous market as I go with the FLS!