Stock price when the opinion was issued
Looking at a 5-year chart, getting close to its 5-year high. Nice breakout above $10. If you take the height of the consolidation pattern (resistance was $10 - support of $7 = $3), and add it up again, you get ~$13, at least to start. That's what we're looking for over the shorter term. Then maybe it consolidates and may continue higher over the longer term.
A top pick last November, because it's one of the leaders in industrial chemicals in North America. There's a lot going on behind the scenes here. He didn't see the downturn in this sector as well as intense competition. Likely, shares won't recover until the economy picks up, but an opportunity now.
Everybody loves the dividend here. Made a really bad acquisition 10 years ago, company was punished. Off that bottom, it's been pretty impressive. Q1 beat by 15%, raised guidance. Really good progress on capital allocation -- dividend raises, small tuck-ins, buybacks. Trades ~4.7 EBIT to EBITDA vs. its normal 6.3 mid-cycle valuation. Add on dips.
It has had some issues but is a much cleaner operating company now, although it's not getting credit for it from the market. It is a specialty chemical company with some good assets. Pays a 6 1/2% dividend and is doing an active share buyback of 5%. There is also growth since it is investing heavily in the water business, treating waste water and municipal water, which also provides stability. It is so cheap you can get a good return. Buy 5 Hold 2 Sell 0
(Analysts’ price target is $14.50)