"We are looking for companies that are expanding rapidly in international markets, sporting respectable yields, and offer solid management and a history of big results," says Keith Fitz-Gerald.
In his Money Map Reporter, he says, "There are a few gems out there. And one such company is Celanese Corp. (NYSE: CE).
"Celanese is the world's largest supplier of acetyl products, including acetic acid and vinyl acetate. What's important to understand is that CE makes 'building block' chemicals based on acetate.
"These chemicals are in almost every household in the world. It specializes in making acid products that others use to create things like plastics, cigarette filters, emulsions, alcohols, acetate products and even food ingredients.
"Not only is CE the world's largest supplier of this specialized material; it also enjoys a huge competitive advantage, based on lower production costs and economies of scale. In fact, 95% of CE's products are number one or number two in their respective markets.
"And the company accounts for a whopping 30% of global acetic acid production. We think that these factors make CE a superb choice when it comes to buffering our downside, while also enabling us to take advantage of the inflationary embers now being stirred up.
"CE operates 31 facilities around the world, with nearly 8,000 employees worldwide, including such markets as America, Europe and the Asian/Pacific Region. Last year, the company posted an impressive $6.4 billion in net sales, and we think it's just getting warmed up.
"CE has an aggressive and simple-to-understand goal. Management wants to expand earnings by double the growth rate of the economy. If you work through the numbers, this suggests as much as another $350 million on the bottom line by 2010.
"We also like the fact that CE has surprised the market in eight of the last nine quarters. There are no guarantees this will continue, but the right buildings blocks are there.
"In years past, chemicals businesses like CE have proven to be notoriously cyclical. But we believe that's not likely to happen. In fact, the data suggests the days of highly cyclical chemicals companies is coming to an end, as the global community increasingly decouples from America.
"CE's board recently sanctioned a $400-million stock buyback plan that's currently under way. That's a great
thing to have in place during turbulent markets. This suggests that CE's management is confident that owning its own stock is more valuable than selling it."
Each day, Steven Halpern's TheStockAdvisors.com offers the latest market commentary and favorite investment ideas from the nation's leading financial newsletter advisors.
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