May 12, 2009 ndash; Analyst Comments ndash; ThinkEquityrsquo;s David Woodburn weighed in on PICO Holdings (Nasdaq:PICO) and Fuel Systems Solutions (Nasdaq:FSYS) this morning, with a BUY and ACCUMULATE rating, respectively. Here are Woodburnrsquo;s comments:

PICO Holdings

middot;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp; Q1 performance was relatively light on transaction volume

middot;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp; Shareholder equity decreased

middot;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp; The company has $91 million in cash, or about $3.21 per share, and key to maintaining value of its assets is the companyrsquo;s ability to ldquo;weather the current economic stormrdquo; without being forced to liquidate assets to cover debt and/or expenses

middot;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp; Stored water assets of more than 183,000 acre-feet of stored water, seven existing geothermal leases and prime locations for solar power projects in California and Arizona

middot;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp; Price target of $47 based on sum-of-parts valuation, and 1.9x multiple to PICOrsquo;s book value

Fuel Systems Solutions

middot;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp; A 31% gain in the stock the day after its Q1 earnings report is indicative that short position has been dramatically reduced

middot;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp; Still view industrial business and US transportation investment as weighing on EPS (and share price) going forward

middot;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp; Revenues of $80 million were in line with expectations but gross margin and EPS blew away estimates

middot;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp; Confirmed guidance, through gross margins may decline as certain business expansions rampmiddot;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp; Would not be surprised by a shelf registration to raise capital

middot;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp; Increased 2009 estimates and price target, to 2009 expected EPS of $1.40,nbsp; and $24, respectively (using a 2010 EV/EBITDA multiple of a group of global clean energy/power and natural gas transportation companies of 6.7x 2010 EBITDA estimate of $61M).

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