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Sometimes when you’re all happy, you go high steppin’.
Like when Deon Sanders made a pick 6, he was always happy.
With $$$MR. MARKET$$$, he’s happy when he’s making money. I won’t be doing any high steppin’, but today I bought Stepan Company at 63.68. I will sell it in 4 – 6 weeks at 73.42.
Here’s why I like Stepan:
Wow! Look at this chart!!?? This stock is going to the moon Alice! Stepan is up 178% off of its 52 week low and yet its PE is only 12. It’s still cheap. The stock has price momentum and it’s cheap. What does that mean? It means that the stock price is going to go up with very little downside risk. On top of that, it pays a 1.5% dividend. Owning Stepan is cheaper than cash!!
Stepan Company engages in the production and sale of specialty and intermediate chemicals. The company operates through three segments: Surfactants, Polymers, and Specialty Products. The Surfactants segment offers products that are principal ingredients in consumer and industrial cleaning products, such as detergents for washing clothes, dishes, carpets, floors, and walls, as well as shampoos, body washes, fabric softeners, and toothpastes. Its other applications include biodiesel, germicidal quaternary compounds, lubricating ingredients, emulsifiers for spreading agricultural products, and plastics and composites.
This one is easy. Stepan is a play on the economy. It makes stuff that everyone uses. When we start buying more stuff, its stock price goes up. When the economy turns up, chemicals should be among the first to rebound. Chemicals are historically early cycle in economic recoveries. China continues to be a market that offers huge potential growth for Stepan.
Stepan uses a network of production facilities in the Americas, Europe, China and the Philippines. Over the last 4 years, it has seen its revenues grow at a double digit rate. Net income has doubled and doubled again each year since 2006. Return on Equity is 18%.
Stepan is driving innovation, driving process improvements, driving global capabilities, and driving market strategies. They are not Driving Miss Daisy.
The dividend was increased by 9.1 percent to an annual rate of $0.96 per common share. This marks the forty-second consecutive annual dividend increase. Stepan has also significantly increased capital expenditures. Companies don’t do that unless they are confident in their cash flow. The dividend is up to about 1.5%. Dividends make me happy.
In the most recent quarter, Net income for the quarter was $19.5 million, or $1.80 per diluted share, compared to $17.0 million, or $1.59 per diluted share, a year ago. The strong quarterly performance was attributable to lower commodity raw material costs, successful cost control initiatives and a desirable product mix for laundry and personal care products that have performed well during this economic downturn.
Gross profit increased by 61 percent to $68.9 million. Strong free cash flow from operations reduced debt, net of cash, from $126.3 million at December 31, 2008, to $37.4 million at September 30, 2009.
So while $$$MR. MARKET$$$ is high steppin his way to another winner, perhaps we can see what the boss has to say:
"Despite the economy, we began 2009 with the intent to drive results within each of our three business units and improve our performance. In each of the first three quarters, we delivered record net income as we benefitted from the relative stability of our large laundry and personal care markets for our surfactant products, falling commodity prices within all three business units and our ability to contain costs," said F. Quinn Stepan, Jr., President and Chief Executive Officer. "In the fourth quarter, earnings will be lower than the previous three quarters due to seasonal volume declines and acceleration of planned maintenance items including a planned 2010 shutdown of our phthalic anhydride (PA) plant in order to complete the work while the PA market remains slow. We are on track to deliver a record year in 2009 and are now focused on driving business growth in 2010."
I am HUGE!!
$$$MR. MARKET$$$
If you make money on this stock, please remember www.dereksdreams.com
Like when Deon Sanders made a pick 6, he was always happy.
With $$$MR. MARKET$$$, he’s happy when he’s making money. I won’t be doing any high steppin’, but today I bought Stepan Company at 63.68. I will sell it in 4 – 6 weeks at 73.42.
Here’s why I like Stepan:
Wow! Look at this chart!!?? This stock is going to the moon Alice! Stepan is up 178% off of its 52 week low and yet its PE is only 12. It’s still cheap. The stock has price momentum and it’s cheap. What does that mean? It means that the stock price is going to go up with very little downside risk. On top of that, it pays a 1.5% dividend. Owning Stepan is cheaper than cash!!
Stepan Company engages in the production and sale of specialty and intermediate chemicals. The company operates through three segments: Surfactants, Polymers, and Specialty Products. The Surfactants segment offers products that are principal ingredients in consumer and industrial cleaning products, such as detergents for washing clothes, dishes, carpets, floors, and walls, as well as shampoos, body washes, fabric softeners, and toothpastes. Its other applications include biodiesel, germicidal quaternary compounds, lubricating ingredients, emulsifiers for spreading agricultural products, and plastics and composites.
This one is easy. Stepan is a play on the economy. It makes stuff that everyone uses. When we start buying more stuff, its stock price goes up. When the economy turns up, chemicals should be among the first to rebound. Chemicals are historically early cycle in economic recoveries. China continues to be a market that offers huge potential growth for Stepan.
Stepan uses a network of production facilities in the Americas, Europe, China and the Philippines. Over the last 4 years, it has seen its revenues grow at a double digit rate. Net income has doubled and doubled again each year since 2006. Return on Equity is 18%.
Stepan is driving innovation, driving process improvements, driving global capabilities, and driving market strategies. They are not Driving Miss Daisy.
The dividend was increased by 9.1 percent to an annual rate of $0.96 per common share. This marks the forty-second consecutive annual dividend increase. Stepan has also significantly increased capital expenditures. Companies don’t do that unless they are confident in their cash flow. The dividend is up to about 1.5%. Dividends make me happy.
In the most recent quarter, Net income for the quarter was $19.5 million, or $1.80 per diluted share, compared to $17.0 million, or $1.59 per diluted share, a year ago. The strong quarterly performance was attributable to lower commodity raw material costs, successful cost control initiatives and a desirable product mix for laundry and personal care products that have performed well during this economic downturn.
Gross profit increased by 61 percent to $68.9 million. Strong free cash flow from operations reduced debt, net of cash, from $126.3 million at December 31, 2008, to $37.4 million at September 30, 2009.
So while $$$MR. MARKET$$$ is high steppin his way to another winner, perhaps we can see what the boss has to say:
"Despite the economy, we began 2009 with the intent to drive results within each of our three business units and improve our performance. In each of the first three quarters, we delivered record net income as we benefitted from the relative stability of our large laundry and personal care markets for our surfactant products, falling commodity prices within all three business units and our ability to contain costs," said F. Quinn Stepan, Jr., President and Chief Executive Officer. "In the fourth quarter, earnings will be lower than the previous three quarters due to seasonal volume declines and acceleration of planned maintenance items including a planned 2010 shutdown of our phthalic anhydride (PA) plant in order to complete the work while the PA market remains slow. We are on track to deliver a record year in 2009 and are now focused on driving business growth in 2010."
I am HUGE!!
$$$MR. MARKET$$$
If you make money on this stock, please remember www.dereksdreams.com
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