Financials | StockTalk | News | Chart | SEC | Zacks Reports     Chart courtesy www.stockcharts.com

Profile: FLIR Systems, Inc. designs, manufactures and markets thermal imaging systems and infrared camera systems that offer a variety of applications in the commercial, industrial and government markets. It provides cutting edge technology to help protect and defend our troops. Its thermography division produces systems that provide precise temperature measurement capabilities and are used for a variety of commercial and industrial applications. Its imaging division produces a range of systems that are used in such applications as long-range surveillance, reconnaissance, search and rescue, security, force protection, targeting and law enforcement. In January 2004, the Company acquired Indigo Systems Corporation, a producer of infrared detectors, infrared cameras and camera subsystems.  Its shares split 2/1 on February 3^rd of this year.  Earnings have been impressive and continue to outperform its peers, earning it an EPS rank in the top 5% of all stocks.  It has shown steady annual earnings growth in recent years.  Management owns 8% of its shares.  The number of top rated funds with an interest rose from 144 in June ’04 to 174 in December ’04, demonstrating that institutional buying demand has been on the rise.  The Aerospace/Defense group was today’s leading group, yet it and the adjacent group from which FLIR hails, Elec-Military Systems, are down in the bottom 1/2 of IBD’s 197 Industry Groups from very high ranks six months ago.

What to Look For and Look Out For: Look for FLIR to continue advancing on heavier volume and consolidating on light volume. When a stock blasts through its pivot point on above average volume the path of least resistance normally leads to higher prices.  However, it is not uncommon for a stock to retest its pivot point, without violating it, before moving higher.  Concern would increase if high volume distribution pushed prices back down into its base and below $33.43, as such weakness would negate the breakout.  The recent market environment has been sending mixed signals, and we’ve seen a number of failed breakouts.  Caution and stop losses at minus 7-8% are a good idea, as always.

Technical Analysis: FLIR had been in a well defined trading range since July 2004, building a long flat base for better than seven months.   Above average volume behind its 3/04/05 and 3/07/05 gains was sufficiently beyond the minimum guideline of 50%+ above average volume for a buyable breakout within proper guidelines.  In recent months its 200-day moving average line has proven to be formidable support.  On 10/20/04 FLIR fell to its 200 DMA but managed a key reversal to actually close the session higher on massive volume. This was a clear sign of institutional support.  Aside from a brief low-volume violation of its 50 DMA, since gapping above its short-term average line from high-volume gains on 12/16/04 the 50 DMA been able to act as support.