Tag - Faro

Leo Fasciocco is a technical expert who focuses on isolating “breakout buys” – stocks that have either just broken above resistance levels or are poised to do so. For short sale candidates, he does the reverse, finding stocks that are breaking below previous support levels. Each day, breakout candidates are featured in his newsletter, Ticker Tape Digest.

A recent breakout buy to the upside is Park Lake Mary, Fla.-based FARO Technologies (Nasdaq: FARO), a small cap that is a maker of control and measurement systems. The company has annual revenues of $152 million and a market capitalization of $550 million.

FARO manufactures a mechanical arm known as the FARO's Control Station measuring system. “With a touch of this arm, the system can facilitate reverse engineering of an undocumented part or a competitor's product,” Fasciocco says.

The FARO Arm, he explains, is a portable, jointed device that simulates the human arm's movement and works with FARO's CAM2 3-D measurement software to take measurements, perform reverse engineering, and inspect parts by comparing them to digital designs.

Aerospace, automotive, consumer goods, and heavy equipment companies such as The Boeing Company (NYSE: BA), Caterpillar Inc. (NYSE: CAT), General Motors Corp. (NYSE: GM), and Siemens AG (NYSE: SI) use FARO Arm units in their factories, Fasciocco points out. Overall, he notes, the company has some 6,000 customers worldwide.

“FARO has finally come to life,” Fasciocco says. The stock has “broken out powerfully,” after the company on July 31 reported a “massive 550% surge” in net for the second quarter to $0.39 a share from $0.06 a share a year earlier.