Olin Corp (OLN)

ikkyu2 (98.58) Submitted: 10/18/06 9:08 PM

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Although I'm hoping they fix CAPS to incorporate dividends before the next issue. Because this is that rarity, the small-cap value stock, and it issued $0.80/share dividends last year on a share price between 12 and 15; so much of its upside is dividend yield.

I own it in my portfolio.

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ikkyu2 (98.58) Submitted: 4/30/07 10:21 PM

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They did fix it, so this stock is again a good CAPS bet.

Incidentally, I have never understood the idea of taking on debt to pay a dividend.  And by that I mean that every dollar paid out in a dividend would be better paid out to service debt.

OLN has no debt.  Their business is in 2 segments, chlor-alkali (electrolysis of salts, basically) and ammunition.

Ammunition is in strong demand lately, and OLN's chlor-alkali business benefits from the proximity of a hydroelectric power plant, unlike most chlor-alkali operations that run off piped natural gas to generate the gargantuan amounts of energy required to electrolyze salts into their component elements.  Because of that, they're financially healthy but their core business *can't* grow.  Which is just what I want in a dividend payor, especially as natural gas prices climb up and up, giving them a competitive advantage in their market.

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ikkyu2 (98.58) Submitted: 6/01/07 5:18 AM

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Well, goes to show what I know. Their core business can't grow - but they grew it anyway, by an acquisition.

Wish I'd bought more of it.

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