Fuel Systems Solutions (FSYS) is down 11% on rumors that Italy will not extend its incentive for natural gas usage. The sell-off in stock it’s being attributed to the following Bloomberg story published this morning:
“Italian Industry Minister Claudio Scajola may present a decree in January that makes 550 million euros ($810 million) available to renew incentives for the purchase of fuel-efficient cars and appliances, la Repubblica newspaper reported without citing anyone.
While most of the money made available in the legislation will end up funding the purchase of new cars, incentives will also be given to companies that purchase more efficient machine tools, Repubblica said. ”
Update: Sidoti and Northland Sec are now defending FSYS: Sidoti saying that the Italian natural gas incentive program will be cut by just 20% in 2010, much better than the 50% the firm was expecting. And Northland Securities says that Incentives will be extended, but at lower amount. They both believe that stock weakness is overdone.
FSYS 45.01 -5.48 (-10.85%)