Olin Corp. (NYSE: OLN) is a diversified producer of chlor-alkali chemicals and ammunition.
Analysts like Olin's chlor-alkali business (75% of 2008 revenue), including products caustic soda and chlorine, among others. An ammunition business rounds-out OLN's diverse industrial plate. Look for the ammunition business to continue to benefit from strong U.S. Government orders, in the immediate years ahead. The Reuters F2008/F2009 EPS consensus estimates for OLN are $1.97/$2.03.
The risks? The commodity chemicals segment is cyclical -- some products are used in pulp and 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. Analysts are also keeping an eye on Olin's skilled labor costs.
The First Call mean rating for OLN is Buy (seven firms). The mean 2008 target is $23.00 (high: $26, low: $20).
Note: OLN is overbought, short-term, so consider purchasing Olin's shares only after a pull-back to $25.50-$26.
Stock Analysis: Olin Corp. is a moderate-risk stock not suitable for low-risk investors. Investors with an investment horizon longer than 2 years should be rewarded from OLN's shares. Sell / Stop Loss if you were to purchase shares in this company: $17.
Disclosure: Lazzaro has no positions in stocks. In addition to private real estate holdings, he owns corporate and municipal bonds, and cash certificates of deposit.
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Reader Comments (Page 1 of 1)
6-24-2008 @ 8:56PM
UNITED STATES BEEN SOLD OUT BY FOREIGNERS said...
olin is selling there company to china or some other foreign company ...
UNITED STATES BEEN SOLD OUT TO FOREIGNERS .
FINE THE COMPANIES FOR MOVING OVERSEAS
THEY'RE TRAITORS .