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Some reasons to invest in chemicals

Aug. 04, 2010 1:19 PM ETHWKN
Jim Van Meerten profile picture
Jim Van Meerten's Blog
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On Barchart Portfolio Blogs I bring to your attention stocks you might want to consider for your portfolio.

Hawkins, Inc. (HWKN) is a regional company, which provides a full range of bulk industrial products complemented with the technical competence and ingenuity to formulate and blend specialty chemicals. The Company sells and services related products and equipment to safely dispense chemicals in highly controlled environments.

They manufacturer, blend, and distribute bulk and specialty chemicals. It operates through two segments: Industrial and Water Treatment. The Industrial segment provides industrial chemicals, products, and services to agriculture, energy, electronics, food, chemical processing, pulp and paper, pharmaceutical, medical device, and plating industries. In addition, this segment manufactures sodium hypochlorite and agricultural products, as well as food-grade products, including Cheese-Phos liquid phosphate, lactates, and other blended products. They perform custom blending of chemicals for customers according to customer formulas.

The Water Treatment Segment provides equipment, chemicals, and solutions for potable water, municipal and industrial wastewater, industrial process water, and non-residential swimming pool water.

Barchart's technical indicators signal a 96% overall buy plus a Trend Spotter (tm) buy signal. The stock hit 12 new highs in the last 20 sessions including a 31.22% price appreciation last month. The 14 day relative strength indicator is above 50 at 72.48. The stock recently traded at 32.93 above its 50 day moving average of 2.63.

Investors have found this stock and are very positive on their estimates that the stock will beat the market. On Motley Fool the CAPS members vote 269 to 7 and the All Stars vote 105 to 0 that the stock will beat the market. That is a very positive vote.

Only one Wall Street brokerage analyst is following the stock and he has a strong buy call out to his clients based on his estimates of increased sales and earnings.

If you'd like some reasons to add a chemical stock to your portfolio consider these reasons to buy Hawkins Inc (HWKN):

  • 96% Barchart overall buy signal
  • Trend Spotter (tm) buy signal
  • 72.48 relative strength indicator
  • Very high investor sentiment
  • A Wall Street strong buy call based on increased sales and earnings

Jim Van Meerten is an investor who writes on investing here and on Barchart Portfolio Blogs. Please leave a comment below or email JimVanMeerten@gmail.com.



Disclosure: No positions in HWKN at the time of publication

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