Sigma-Aldrich
Corp develops, manufactures and distributes a wide assortment (185,000
products) of biochemicals, organic chemicals, chromatography products and
diagnostic reagents in over 166 countries.
The company has grown earnings and dividends at a 14-16% annual rate
over the last 10 years while earning 17-20% on its equity. SIAL
should be able to continue this performance because:
(1) increased investment
in its marketing and R&D effort should spur sales,
(2) the company
has upgraded its Life Sciences division via acquisitions and the introduction
of new products,
(3) an
aggressive cost controls through supply chain initiatives and SG&A management,
(4) an ongoing
stock buyback program.
Negatives
(1)
the current economic uncertainty could negatively
impact SIAL ’s results,
(2)
increasing costs,
(3)
economic challenges in biotech research.
Statistical Summary
Stock Dividend Payout # Increases
Yield Growth Rate Ratio
Since 2004
Ind Ave 1.7 9 24 NA
Debt/ EPS Down Net Value Line
Equity ROE Since 2004 Margin Rating
Ind Ave 32 17 NA 9 NA
Chart
Note:
SIAL stock made great progress off its March 2009 low, quickly surpassing the
downtrend off its August 2008 high (straight red line) and the November 2008
trading high (green line). It is in uptrends
across all timeframes: long term (blue lines), intermediate term (purple lines)
and short term (brown line). The wiggly
red line is the 50 day moving average.
The Aggressive Growth and Dividend Growth Portfolios own 85% positions
in SIAL. The upper boundary of its Buy
Value Range is $82; the lower boundary of its Sell Half Range is $147.
9/14
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