Compass Minerals International, Inc. (CMP)
The Company through its subsidiaries is a producer and marketer of inorganic mineral products with manufacturing sites in North America and the United Kingdom.
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Although repayment of debt is looming in the near future depressing prices for 2010, the track record and demand for both road salt and fertilizer is at high demand. I think this stock is a great buy not only for growth potential but to hold for the dividend as well.
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Going for the road salt play here... but also grew up six houses down from Lake Erie and its huge salt mines,and took Organic Chemistry and Physics...so I appreciate all the cool technological processes that salt make possible.
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Strong salt mining company that's struggling this week. Expect rebound.
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sweet dividends
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Low P/E, Increasing Earnings, Recent breakout above W pattern, currently testing support.
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I found Compass Minerals using a screen that looks for companies with low p/e and high returns on equity. In addition, the screen requires that earnings estimates are being revised upwards. Compass is attractively valued right now at 11 times earnings and 1.8 times sales. Although the company still needs to pay down some debt, its balacnce sheet is reasonable. Its returns on equity and assets are stratospheric. The timing is right because Compass Minerals provides minerals to the fertilizer industry and I believe agriculture is due for a reboudn. Others seems to agree on timing as demonstrated by: (1) analyst revisions (2) Caps rating 4 and (3) Stockscouter rating 10.
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NaCl like H20 is essential, these folks have vast reserves
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strong 5 year ROE& profit margin improvement and still at reasonable PE ratios
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Low-cost producer of essential and prized minerals with an attractive valuation.
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Economic recovery
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Has enough salt for over 100 years. Roads will always need de icing. Stable government contracts.
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CMP seems to have a wide moat as a low cost producer of salt. The wide moat is the result of short transport distances from salt mines. All of their mines are located close to major waterways which lowers truck transportation cost. This is a huge advantage over competition. This sustainable competitive advantage allows CMP to generate steady, healthy levels of free cash flow.
The stock pays a nice dividend. The PE is around 10 - attractive but not cheap. CAPS likes it with a 4/5 star rating, and so do I.
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global demand
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road salt - famers almanac predicting coldy, snowy winter
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ShortAlert
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Need salt for just about everything.
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This is a great low cost salt producer with the added bonus of also producing sulfate of potash, a high end fertilizer. It is currently mispriced becaused of precipitous drop in the prices of SOP but should rebound nicely when that market does. Plus the company continues to develop its other less seasonal businesses.
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Good portfolio - winter dependent salt business to balance weak fertilizer business now. A cyclical commodity with great margins. Strong cash generator - will continue to lower debt burden. May strengthen its fertilizer position long-term with new mine in Northamerica. Solid long term investment.
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testing high ROE/RGR
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Low relative PE, good star ranking, PEG & 09 PE still below normal - bottom fishing 4/27 picks.

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