Saturday, September 4, 2010

Stock of the Month: September

September is off to a great start with three straight days of decent gains.  Although the unemployment rate inched down to 9.6%, the Dow Jones rallied about $130.  I must say this is quite nerve racking because September and October are known as the "crash months" and haven't treated stocks well historically.  On a brighter note, there are bright spots and buying opportunities that you should be going after.  This month's stock has been beaten down but is certainly reliable when it comes to beating estimates each quarter.

The Stock of the Month for September is Balchem Corp (BCPC).
Balchem provides specialty performance ingredients and products for the food, nutritional, feed, pharmaceutical, and medical sterilization industries in the United States and internationally.  Believe it or not, every time you eat cereal, you are using Balchem's products.  As you can see by the graph and my analysis, there are signs of a bullishness. 

On the fundamental side, Balchem is very strong.  As of June 30, 2010, BCPC has $200,339 worth of assets, and only $34,928 in liabilities (including $1,308 in short term debt and $3,815 in long term debt).  Balchem has significantly lowered its debt positions which is a very good sign of stability and a very low, low risk of default.   BCPC's PEG (price/earnings growth) is 1.83.  This is a good sign of growth in the future.  EPS is $1 (very good), P/E is around 25.  BCPC pays a weak dividend of .3%, but the company is well run and managed which shows in its continued success at beating estimates.

Invest Chief's 12 month projection for Balchem is $30.75.  Watch for updated news and earnings.  We will keep keep updating the status of Balchem as updates occur.

Disclaimer: Invest Chief is not held accountable to any loses sustained by stocks recommended. It is always important to do your own research of the stock before you invest. Invest Chief receives absolutely no compensation from companies that are recommended. We are a private organization, dedicated to promoting financial well being and prosperity.

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