IOSP: Inspecting Wallflower Innospec
Source: http://feeds.feedburner.com/~r/StockMarketBeat/~3/286142913/Posted on Thursday, May 8th, 2008 | In Current Market News, Stocks to Watch
My latest column is up at RealMoney as part of my series on wallflowers – stocks that have little or no analyst coverage.
In this column I look at Innospec (IOSP), which makes fuel additives and other specialty chemicals that are sold primarily to oil refineries and other chemical and industrial companies. The company operates in three segments: fuel specialties, active chemicals and octane additives.
Innospec has a monopoly position in the rapidly declining business of tetraethyl lead additives for gasoline. In the past, declines in that business have overshadowed growth in the remainder of the firm. Now accounting for just 16% of total revenue, I think the lead weight is becoming less burdensome.
Innospec scores well in my models:
- Earnings momentum: Positive
- Earnings quality: Neutral
- Price momentum: Positive
- Free cash flow: Neutral
- Return potential: Positive
Disclosure: At time of publication, William Trent has no position in the companies mentioned in this article.
Sponsor: Financial Education Everything you need to know about finance
Disclosure: Author is long UNITED STS OIL FD LP UNITS (USO) at time of publication.
Last 5 posts by William Trent
- Truck Tonnage Index - December 1st, 2009
- Corporate Cash Flow - November 29th, 2009
- Corporate Profits - November 29th, 2009
- Capacity Utilization - November 22nd, 2009
- Capacity Utilization - August 16th, 2009
 About William A. Trent (http://stockmarketbeat.com)
Stock Market Beat editor William A. Trent, CFA, has been an equity analyst since 1996 and is co-author of Understanding and Evaluating Prospectuses, Offering Documents, and Proxy Statements. His experience includes stints with institutional investors responsible for more than $70 billion in assets and covers all market-cap sizes. Sector concentrations have been within the TMT (Telecom, Media and Technology) and Transportation sectors. He is also the senior editor of Financial Education. He is available for freelance writing and consulting projects and can be contacted here. |
No recommendations, either expressed or implied, are being made to buy, sell, hold or short any of the mentioned stocks. No legal, tax or accounting advice is expressed or implied. Always contact your attorney, CPA, or tax advisor before acting on any legal or tax issues. StraightStocks.com is not responsible for the content, products, or services of any of the advertisers on this site. StraightStocks.com receives compensation from advertisers on this blog. Services and products referred to herein are trademarks, registered trademarks, servicemarks, and/or registered servicemarks of their respective trademark or servicemark owners.