- Innospec (IOSP +1.3%) is higher after Barron's profiles the specialty chemical company as oversold after investors have dumped shares thanks to guilt by association with the energy industry.
- IOSP's oilfield services business accounts for just 25% of sales, so while energy’s downturn has hurt results, the company is not dependent on its recovery; fuel additives make up 55% of revenue, and the segment continues to perform well.
- Even though IOSP had a down Q4, it still finished 2015 with record cash on the books, 3x its cash in Q4 2014; "to have a tough quarter like that and still generate gobs of cash shows the resilience of the business model," says David Bechtel of Barrow Street Advisors.
- Now read Innospec muddling through better than most