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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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Primary Recommendation

Elementis - Huge Asian opportunity for specialty chemicals group

April 2011

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • ELM
  • Price:
  • 156p
A business that makes additives to enhance the performance of liquids used in industrial coatings may not sound particularly glamourous but fuelled by rapidly improving markets as well as entry into new areas, brokers have been forced to upgrade forecasts for Elementis on no fewer than four occasions in the past 15 months. In the end, for 2010 Elementis delivered a pretax profit to US$96m, against original expectations of only US$27m. What we particularly like about Elementis is that it has established a dominant market position, the tell-tale signs being very high returns on capital and strong cash generation, while barriers to entry also appear high. Management clearly have a vision of how to take it to the next level, with fina ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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