Olin Corp (NYSE:OLN)

efficiencygrade (48.24) Submitted: 6/17/2007 9:55:13 PM : Start Price: $16.27 OLN Score: +27.97

I liked this company before Pioneer buy, and even though some P investors feel like they got the raw end of the stick and is taking this to court, I believe it'll still go thru.

(Yes, Olin did get a great deal........)

With that said, I'll like this company even more after it spins off Winchester. The one trick to this is the WCC (Win Cartride Company) will have to be bought by someone the DOD will accept, since they make so much 5.56/7.62 NATO ammunition for our troops. I think Winchester was about 12% of Olin's revenues last year, and even the ammunition is at best a peripheral to Olin's core business (chemicals and metals, of course).

I just found CAPS, but I bought into Olin at $16.23 and see this is a long term hold for me. When the synergies of the Pioneer buy start to be realized in FY2008/2009, look out, this company will get many more analysts on board, and the stock will appreciate steadily, IMHO.

If they do spinoff Winchester, I will keep those shares, even though they arent making rifles anymore (a tragedy, in my opinion). The name is an icon in America, and sporting ammunition (and to the .gov) will continue to be strong, and the brand sells hunting supplies (t shirts, bags, etc). Winchester is a recognized, household name that can earn more on its own, IMHO.

Fundamentals? P/S of 0.46 and P/Bk of 2.66 makes me think this is a steady, long term hold.