Fuel Systems Solutions, Inc. (FSYS)

[Democritus_of_Abdera]

FSYS Near-Term Stock Price Action....

Some of the anxiety concerning FSYS's near term future probably relates to concern about Italy's upcoming decision regarding extension of its auto stimulus program.

An article in the Motley Fool on Jan 21 suggested that the incentive program in Italy is likely to be reduced to 25% of last year's total. The Italian Cabinet is likely to make a decision in a Jan 29 meeting regarding new car incentives. see: http://www.bloomberg.com/apps/news?pid=20601092&sid=aN_v2hKdBkOA

Note, one of the two new risk factors listed in FSYS' November 6, 2009 10Q was:

Expiration of Italian government incentives for post-production OEM conversions may materially adversely affect our revenue and operating results.

The Italian government in early 2009 provided significantly increased economic incentives for the purchase before December 31, 2009 of new dual fuel consumer automobiles, commercial transportation vehicles and motorbikes which use compressed natural gas (NPG) or liquid propane gas (LPG). These incentives, combined with our investment in OEM conversion facilities in Italy, stimulated significant growth in the first half of 2009 of our BRC division revenues and operating income. While we believe the Italian government incentives for 2009 purchases increased demand for our post-production OEM conversions in Italy, we also believe that demand is stimulated by the lower price, when compared to gasoline, of CNG and LPG in Italy and elsewhere in Europe. While we believe that the Italian government may extend the incentives beyond 2009, we can offer no assurance that the incentives will be continued or will not be significantly reduced. The expiration or reduction of the Italian government incentives may significantly reduce demand for our post-production OEM conversions and, accordingly, materially reduce the revenue and operating results from our BRC operations and thereby our company as a whole.

see: http://www.sec.gov/Archives/edgar/data/1340786/000119312509227753/d10q.htm