Chart Industries (GTLS)

Stock of the Day
Chart industries (GTLS)
Friday’s Opening Price: GTLS – $29.49

Sector: Industrial Goods
Industry: Metal Fabrication
52-week Price: $31.37 – $11.16

Chart Industries (GTLS) was first featured on June 13, 2007 at $23.05 as a Fresh IPO Idea. The stock had 121 institutional supporters at the time, a number that has increased 54% to 187 with a large influx of cash. Almost $500 million of shares have been purchased in the most recent quarter while only $65 million shares were sold, a sure sign of institutional accumulation. The number of shares held has doubled from 15.73 million in June to 31.82 million today.

This is the type of activity that I like to see in a young growth stock that is currently building a cup shaped base after a prior uptrend. It has been making recent daily screens and is currently on the top of my potential buy list. I don’t own shares as I write this analysis but I will be looking for a handle formation to jump into a position. The ideal trade setup is located below with proper position sizing and risk-to-reward margins based on a moving average (swing) trade (not a cup with handle because a handle hasn’t formed).


GTLS was Featured in these posts in June 2007:
6/13/07: Fresh IPO Ideas, GTLS – Chart Industries Inc. – $23.05
6/20/07: Young Guns Taking Off, GTLS – $24.73

Institutional Analysis:
Total Institutions: 187
Money Market: 97
Mutual Fund: 85
Other: 5

New Positions: 86
Positions Sold: 13
Shares Held: 31.82 mil
Shares Held Previous Period: 15.59 mil

Shares Bought: 18.75 mil
Shares Sold: 2.51 mil
Value of Shares Bought: $486.9 mil
Value of Shares Sold: 65.2 mil

Top Institutional holders; Shares Held:
Capital Research and Management Company; 2,266,400
Gendell, Jeffrey L.; 1,686,400
Delta Partners LLC; 1,629,840
Smallcap World Fund; 1,613,500
Neuberger Berman, LLC; 1,318,500

Potential Trade Set-up (moving average setup – not cup w/ handle):
Ideal Entry: $28.00
Risk is set at 1.0% maximum of total portfolio or $1,000 of $100k
Stop Loss is % or $25.76
Number of Shares: 446
Position Size is $12,500
Risk is $2.24
Target is $38
Risk-to-Reward is 4.46-to-1

*The target is an educational guess based on the depth of the cup shaped pattern*

Key Fundamental Numbers:
Market Cap.: $820.9M
Outstanding Shares: 27.6M
Float: 27.1M
ROA (%): 4.41%
ROE (%): 13.78%
P/E (TTM): 24.76
PEG Ratio: 0.88%
Price to Sales Ratio: 1.35x
Price to Book Ratio: 2.92x
Price to Cash Flow: 15.78x
Total Debt/Total Capital: 47.04%
Gross Profit Margin: 28.48%
Operating Profit Margin: 12.07%
Net Profit Margin: 5.19%

Growth Rates:
EPS (MRQ): 53.17%
EPS (TTM): 486.10%
Revenue (MRQ): 29.54%
Revenue (TTM): 29.64%
3-Yr EPS Rate: 16%
3-Yr Sales Rate: 31%

*** For 2007, analysts estimate GTLS will earn $1.62 per share, a 55.77% increase over 2006 results***


Yearly (2009): $2.63E
Yearly (2008): $2.12E
Yearly (2007): $1.62E
Yearly (2006): $1.04

Revenue (millions):
Yearly (2006): 537M
Yearly (2005): 403M
Yearly (2004): 306M
Yearly (2003): 266M
Yearly (2002): 276M

Net Income (millions):
Yearly (2006): 26,895
Yearly (2005): 8,352
Yearly (2004): 22,600
Yearly (2003): (7,887)
Yearly (2002): (134,002)

Company Profile:
Chart Industries, Inc. (Chart Industries) is an independent global manufacturer of engineered equipment used in the production, storage and end-use of hydrocarbon and industrial gases. The Company supplies engineered equipment used throughout the global liquid gas supply chain. The largest portion of end-use applications for its products is energy-related, accounting for 56% of sales and 58% of orders during the year ended December 31, 2006, and 79% of backlog in 2006. The majority of its products, including vacuum-insulated containment vessels, heat exchangers, cold boxes and other cryogenic components, are used throughout the liquid gas supply chain for the purification, liquefaction, distribution, storage and end-use of hydrocarbon and industrial gases. The Company operates in three segments: Energy and Chemicals (E&C), Distribution and Storage (D&S) and BioMedical. On May 26, 2006, the Company acquired Cooler Service Company, Inc., an air-cooled heat exchanger business (CSC).


  1. hey chris, I enjoy reading your blog/website very much. I have a question. since you follow CANSLIM, that it change if the fund (I think he has one) from will o’neill has shares in the stocks you scan? meaning, if they also are using the same (or similar system) that would make sense, right? do you get any influence by it?

  2. I couldn’t find your email but wanted to let you know about a very small experiment I’m working on called PickTheMarket is an experiment to see if a group of people can use “group intuition” to pick if the stock market will go up or down each trading day as compared to the overall NYSE Composite Index performance. We are still beta testing and wanted to see if you’d like to become a beta tester.

    Feel free to delete the comment once you read it. Cheers

  3. Rafael,
    Not sure if I followed the question completely.

  4. Hi Chris,

    Today IBD ( Opened up a free trial of Daily Graphs for 1 week starting today. I am using your Fundamental Criteria to run some great screens – very cool!

  5. possible pivot of $30.38. I too would like to see a few more days of light volume on a down sloping handle. Good one Chris. As always thanks. Your insight has put you at the top of my “must read” daily blog list.


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