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JimVanMeerten (65.24)

Nichechemical Play

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December 01, 2009 – Comments (0) | RELATED TICKERS: KMG

On Financial Tides we try to find you companies hitting new highs all the time. KMG Chemicals -- KMBG has hit 15 new highs in the last 20 trading sessions and 4 of the recently 5. KMGB has had a 98.35% price appreciation in the last 65 days. BarChart's technical indicators have 12 of 13 buy signals with one hold for an overall buy rating of 96%

Before this stock can up on my BarChart screeer for new high frequency I didn't even know what nichechemicals was. KMGB manufactures, markets and distributes specialty, nichechemicals. The company manufactures, markets and distributes three wood preserving chemicals, pentachlorophenol, creosote and sodium pentachlorophenate, to industrial customers engaged in the wood preserving business. The company's customers use these preservatives to treat wood and supply the treated wood products to end-users in a variety of industries, principally the railroad, utility and construction industries.

As always I look to see what Wall Street thinks about the stock - I don't want to purchase a stock that's being trashed. Only one analyst follows this stock David Yuschak and he rates it a strong buy. He looks for an 8% increase in sales and a 16.7% increase in EPS.

Over on Motley Fool the CAPS members think the stock will outperform the market by a 205 to 19 vote with the All Stars voting 43 to 7. Their Wall Street players vote 2 to 0.

Points I look for that this stock meets:
1 - Hitting new high more than 50% of recent trading sessions

2 - No Wall Street firms trashing it

3 - Good consensus on other sites

Recommendation: I'm buying KMGB - KMG Chemicals for my Marketocracy VMNHI portfolio around 18 with a protective stop loss no lower than 15.

Jim Van Meerten is an investor who writes on financial matters here and on Financial Tides. Please leave a comment below or email FinancialTides@gmail.com

Disclosure: no positions in KMGB at time of publications

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