The business manufactures electrolytes used to make lithium batteries as well as specialty solvents. Novolyte will absorb the manufacturing employees.

Ferro, a Zacks #1 Rank (Strong Buy), continues to have strong fundamentals.

On Aug 5, it reported second quarter earnings that beat Wall Street estimates by 31.25%. Sales rose 17% to $650 million from $553.7 million in the year ago period.

Consensus estimates for the third quarter are steady at 31 cents per share. Full year estimates are up 5 cents to $1.38 in the last 60 days. Analysts expect 2008 year-over-year earnings per share growth of 62.65%.

Ferro is now trading at 10.5x forward earnings. Its price-to-book is 1.46. The company reports third-quarter earnings on Nov 6.

Read the July 8 analysis.

Update to Previous Value Zacks Rank Buy Stocks

The Pantry, Inc. (PTRY), a southeastern U.S. convenience store chain, saw revenues grow 20.1% in the third quarter. PTRY surprised on estimates in the last quarter by 71.43%. The Pantry is trading at 9.6x forward earnings. Read the Oct 14 analysis.

Parlux Fragrances, Inc. (PARL) saw sales surged 43% in the second quarter on the selling strength of Jessica Simpson and Paris Hilton fragrances. Branded fragrances are still a hot commodity going into the holiday season. The company has a forward P/E of 10.15. Read the Oct 15 analysis.

Medifast, Inc. (MED), which sells weight loss products and programs, is growing quickly as diet, health and fitness programs remain hot. Revenues rose 25% in the second quarter and the company recently said third quarter financials look strong. MED has a forward P/E of 9.97. Read the Oct 16 analysis.

Layne Christensen Company (LAYN), the drilling service provider, grew revenues by 23.8% in the second quarter. LAYN has surprised on earnings 3 out of the last 4 quarters on average by 19.18%. It has a forward P/E of 8.05. Read the Oct 17 analysis.

"FOE" Free Stock Analysis: Buy? Sell? Hold?
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