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New Flow International Corp. (FLOW) Business Orders Augur Well for the Stock

Imagine using water to cut. Incredibly, this company uses the stuff we drink and wash with to cut metals and fibers. It does this by producing powerful jets through specialized pumps.

Aircraft and semiconductor manufacturers, as well as suppliers of key equipment to military forces, are among the prime industries that use high pressure jets of water to cut. That is apart from the more conventional cleaning applications, in which high pressure water jets are musts to remove paint, clean ship hulls, and keep oil rig sites in good working order.

This company was worth less than $400 million at the end of the first week of April 2008. Yet it is a world leader in the high pressure water jet business. Apart from cutting and washing operations, the company also offers rare technological services to industrial clients for robotic cleaning and separation operations.

It should surprise no discerning stock investor that new business orders flow thick and fast. Mitsubishi Heavy Industries is one of the prominent clients that have signed a large, new contract for supply of high pressure pumps with this company.

The stock has traded at less than $10.50 during the first week of April 2008. This is against a 52-week high of $13.83. Demand prospects for water-cutting and for cleaning pumps indicate that this stock will grow strongly. The company has generated a Gross Margin in excess of 40% over the last four quarters.

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