Good morning and Happy 2010. If they were remaking the movie The Graduate today in 2010, when Mr. McGuire pulls aside young Ben Braddock (Dustin Hoffman) and says," I just want to say one word to you", "are you listening", the word would be "Synthetics". "There's a great future in Synthetics". "Enough said". What are some of the names of these producers of specialty compounds and chemicals you ask? Well the one everyone loves for the long term is Sociedad Qufmica y Minera de Chile S.A. ADR, (Symbol NYSE: SQM), the miner of lithium and potash. The Hybrid automobile market needs boatloads of Lithium to make all those car batteries, not to mention the batteries in all those cell phones, I-phones and I-pods. The Andes mountains hold 90% of the world's lithium brine. Enough said. Rated a hold currently because of being fully valued and having some pesky cash problems with paying their dividend, this is a good 3-year investment at the right buy in point. Praxair Inc.(Symbol PX) would be the next stock I would mention. They produce Oxygen. Pretty important stuff for life. Good sales growth 14.8%, good earnings, good dividend, 43% operating margins. Enough said.
Calgon Carbon Corp., (Symbol CCC), falls into the synthetics group also. They purify dirty water and do Mercury removal. Important stuff for human existance. This stock is up 141% in 3 years. Earnings are starting to advance nicely. Enough said.
I should mention that I am not a registered financial advisor and that everything that I report is just from my common sense observation. I do have a degree in Psychology from Rutgers, Camden NJ., (symbol R.U.C.C.A.S.), if that gives you some comfort, so I can console you on any bad trades you make.
Last, but not least, is Albemarle Corp., (Symbol NYSE: ALB).
These guys have three operating segments: Polymer Additives, Catalysts and Fine Chemicals. Earnings estimate for this year are $1.80, for next year $2.47 per share. 12 month total return is 74.8%. 5 year earnings growth of 21.92%. Look it up if you don't beleive me. http://www.smartmoney.com. The link is on my blog.
So if you want to find your Elaine (below) .............
you better do your homework, and look at the numbers.
Enough Said,
Freewilly
Good Work Dave - finally got to the site since the 1st of the year. Doing my due dilligence and getting ready for a Feb buy! If I had millions, you'd be the one managing it for sure.
ReplyDeleteKeep up the good work.
JCL
JCL good evening. I hope you waited a little bit till making your trade. February is usually a pretty good time of year to get some bargains. Companies seem to be coming through with pretty good earnings.
ReplyDeleteBest Regards,
Freewilly