Thursday, September 18, 2014

Balchem Corp (BCPC) 2014 Review

Balchem Corp. provides specialty ingredients and products for the food, nutritional, feed, pharmaceutical and medical sterilization industries including (1) specialty gases used to sterilize medical devices and to produce specialty herbicides, fertilizers and pharmaceuticals, (2) solutions for microencapsulation, granulation and agglomeration for applications in food, pharmaceutical and nutritional ingredients and (3) nutritional products for animals.  BCPC has grown profits and dividends at a 20%+ rate over the last five years earning a 15-20% return on equity

            The company has been able to weather the recent economic down turn and should continue to grow as the rising standard of living throughout the third and emerging worlds lead to improved diet and healthcare.

            BCPC is rated B++ by Value Line, has no debt and its stock yields .5%.

Statistical Summary

                 Stock      Dividend         Payout      # Increases 
               Yield      Growth Rate     Ratio       Since 2004

BCPC         .5%           20%             29                6
Ind Ave      1.7              9                 24               NA

                Debt/                      EPS Down       Net        Value Line
              Equity         ROE      Since 2004      Margin       Rating

BCPC       0%             14%            0                13%           B++
Ind Ave    32               17             NA                9              NA

     Chart

            Note: BCPC stock made great progress off its March 2009 low, quickly surpassing the downtrend off its September 2008 high (straight red line) and the November 2008 trading high (green line).  Long term it is in an uptrend (blue lines).  Intermediate term it is in a trading range (purple lines).  The wiggly red line is the 50 day moving average. The Aggressive Growth Portfolio owns a full position in BCPC.  The upper boundary of its Buy Value Range is $53; the lower boundary of its Sell Half Range is $82. 




9/14

No comments:

Post a Comment