ICO Turns Free Cash Flow Positive (ICOC)

Jun.14.06 | About: ICO Inc. (ICOC)

ICO, Inc., (Nasdaq: ICOC) and its subsidiaries manufacture specialty resins and concentrates. It also provides toll processing services, including ambient grinding, jet milling, compounding, and ancillary services for polymer resins produced in pellet forms and other materials. Its customers include chemical companies, polymer production affiliates of major oil exploration and production companies, and manufacturers of plastic products.

For the first time in five years, its free cash flow was positive for its second quarter. Free cash flow growth was 210% and CFFO growth of 522% over its latest 12 months. It has an impressive number (41) of institutional investors for a company with a market cap of $125 million. Also, still trading above its 200 day moving average.

Below is the 5 year free cash flow chart :

We need to look at the 20 quarter chart to get the real picture :

Here you can see what I am getting at and why this stock is poised to do well. If you go down to line 11 you will see the 210% Free Cash flow trailing tweleve month growth. Notice it is the highest it has been in the last 20 quarters. If you go to line 6 you will see the operational cash flow trailing tweleve month growth is 522%, this is also the highest it has been in the last 20 quarters. In addition this is also the highest free cash yield at 5.9%. You can see most of the other indicators are also near if not at there all time highs over the last 20 quarters.

Due to the fundamentals shown here these stocks will hold their own over the market sell off and will explode when the sell off reverses.

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