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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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Elementis - Personal care acquisition transforms growth prospects

May 2018

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:
  • 297p
Specialty chemicals group, Elementis, is best known for making additives that enhance the look, feel and stability of industrial paints and coatings. Its claim to fame is ownership of the world’s only mine that produces the key raw material (hectorite clay) for these products, which alongside proprietary technology has allowed it to generate healthy margins, cash flow and a lucrative stream of special dividends. But that’s not the reason the shares are topping the charts right now. That outperformance reflects a change in strategy in which the group is shedding its cyclical tag by building its smaller but fast growing personal care business, which makes products to improve the feel of creams and lotions on the skin and has gr ...

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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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