Sunday, 01 February 2009 23:00

These are the Doo Doo 20 of the Chemical World

I performed a scan of chemical and chemical specialty companies and came up with the sector's version of the Doo Doo 32.
I have not taken any positions in these companies for I felt there were
better risk/reward opportunities elsewhere, but I decided to release
the list to the blog to get the reader's feedback.Those who have
expertise in the industry are urged to let me know if I have overlooked
something. Keep in mind that this screen is from a short seller's
perspective and companies whose share price have already fallen
significantly have been excluded by default.

Total companies -20
Ticker
Market Cap (mn) Close Px P/E EV/ EBITDA P/BVPS Price / Tan. BVPS Cash / Assets Total debt ($ mn) Debt / Market Cap Debt / Equity Debt / EBITDA Net Debt / Assets Debt / Assets
ALB US Equity ALBEMARLE CORP 2,052 22.5 10.7 6.43 1.9 2.6 5% 932 45% 87% 2.20 28% 33%
APD US Equity AIR PRODS & CHEM 11,349 54.2 16.5 6.60 2.4 3.1 1% 4,169 37% 88% 1.79 33% 34%
AVY US Equity AVERY DENNISON 2,959 27.8 10.4 6.45 1.6 49.3 1% 2,210 75% 126% 2.82 35% 37%
BMS US Equity BEMIS CO 2,302 23.1 14.0 6.50 1.7 3.5 5% 687 30% 51% 1.52 20% 24%
DD US Equity DU PONT (EI) 20,917 23.2 10.6 5.59 3.0 10.2 4% 9,650 46% 140% 1.87 22% 27%
EMN US Equity EASTMAN CHEMICAL 2,005 27.6 4.8 3.25 1.1 1.3 15% 1,436 72% 79% 1.50 11% 26%
IFF US Equity INTL FLVR & FRAG 2,234 28.4 10.0 7.29 3.1 N/M 6% 1,190 53% 164% 2.62 37% 43%
IPHS US Equity INNOPHOS HOLDING 347 16.5 2.5 2.12 1.8 4.1 3% 383 110% 202% 1.34 50% 53%
KOP US Equity KOPPERS HOLDINGS 348 17.1 5.2 4.40 N/M N/M 3% 451 129% 2.55 63% 66%
PPG US Equity PPG INDS INC 6,380 38.9 12.0 4.96 1.5 N/M 4% 3,947 62% 94% 1.99 22% 26%
PTV US Equity PACTIV CORP 2,817 21.4 13.1 6.51 4.4 N/M 2% 1,345 48% 210% 2.15 34% 36%
RKT US Equity ROCK-TENN CO-A 1,068 27.9 11.3 7.38 1.7 N/M 2% 1,692 159% 264% 4.61 54% 56%
ROH US Equity ROHM & HAAS CO 11,146 57.1 17.8 9.53 3.3 50.7 3% 3,229 29% 97% 2.18 29% 32%
SCL US Equity STEPAN CO 383 39.8 11.3 5.94 1.7 1.8 1% 150 39% 66% 1.69 22% 23%
SON US Equity SONOCO PRODUCTS 2,293 23.0 12.7 5.35 1.6 4.4 2% 786 34% 53% 1.43 22% 24%
SXT US Equity SENSIENT TECHNOL 1,095 22.7 12.2 7.64 1.3 2.9 1% 484 44% 56% 2.36 29% 30%
VAL US Equity VALSPAR CORP 1,831 18.3 13.3 7.22 1.3 N/M 3% 956 52% 66% 2.56 25% 27%
Last modified on Sunday, 01 February 2009 23:00

6 comments

  • Comment Link MRConsulting Wednesday, 04 February 2009 15:12 posted by MRConsulting

    I agree 100% about FXP - it's not for holding, only active trading. That goes for most leveraged ETFs. Both EEV and FXP killed me in Nov and Dec. NDBagger has the right idea.

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  • Comment Link NDbadger Tuesday, 03 February 2009 23:07 posted by NDbadger

    You can buy puts on FXI, or just short it. FXP is a bizarre instrument if you plan to use it for any extended length of time.

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  • Comment Link Orinoco Tuesday, 03 February 2009 22:00 posted by Orinoco

    Does anybody knows a way to short China other than FXP?

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  • Comment Link shaunsnoll Tuesday, 03 February 2009 18:55 posted by shaunsnoll

    even down as much as it is, i still think china is the short of this year, that countries economy is coming unwound in a way that most i think will find it difficult to comprehend and with some still very bullish (including jim cramer) this is going to blind side many investors who havn't done their research. but anyway, i thought it was an interesting data point, although not surprising.

    cheers Reggie! i am still simply amazed about your record and it just keeps going, at some point its no longer about being on a roll, since you're not "on a roll" if it never stops! this crystal ball of yours just never stops!

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  • Comment Link Reggie Middleton Tuesday, 03 February 2009 10:43 posted by Reggie Middleton

    Can't say we didn't see this coming in the middle of last year: [url=http://boombustblog.com/20080819519/China-Macro-Update.html]China Macro Update[/url]

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  • Comment Link shaunsnoll Tuesday, 03 February 2009 10:26 posted by shaunsnoll

    thanks alot. it's great to see more of the steps in your research process even if/when dont' finish it. i'll dig through these and see if i can come up with anything useful. SOA was previously one of my favorite shorts but they are already down so much.

    PS: check this out, looks like 40% of rural workers who left the cities for home during chinese new years did not have jobs to return to
    http://www.rgemonitor.com/asia-monitor/255380/unemployment_in_chinaoh_boy

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