Olin Corp. has it covered, from bleach to bullets

Given the market's continued choppy / consolidating pattern, it makes sense to add a defensive stock or two, and one worth an evaluation is conglomerate Olin Corp.

Olin Corp. (NYSE: OLN) is a diversified producer of brass metal products, chlor-alkali chemicals, and ammunition.

Analysts like Olin's chlor-alkali business (21% of 2006 revenue), including products like caustic soda and chlorine, among others. An impressive brass operation (67% of 2006 revenue), and an ammunition business (12% of revenue) rounds-out OLN's diverse industrial plate. Look for the ammunition business to continue to benefit from strong military orders, in the immediate years ahead. The Reuters F2007/F2008 EPS consensus estimates for OLN are $1.50/$1.46.

The drawbacks? The commodity chemicals segment is cyclical -- some products are used in pulp/paper processing and to keep swimming pool water clean, for example -- so analysts will look for signs of a slower-economy-induced dip in orders in Q1/Q2 2008.

The First Call mean rating for OLN is: Buy. [7 firms.] Mean 2008 target: $24.00. [high: $27, low: $20.]

Stock Analysis: Olin Corp. is a moderate-risk stock not suitable for low-risk investors. Investors with an investment horizon longer than two years should be rewarded from OLN's shares. Sell / Stop Loss if you were to purchase shares in this company: $13.

DISCLOSURE: Joseph Lazzaro has no positions in stocks. In addition to private real estate holdings, he owns corporate and municipal bonds, and cash certificates of deposit.