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3 pts

Opinion on  KMG Chemicals Inc. (KMGB)     Sector: Basic Materials  >  Industry: Chemical Manufacturing
Small CAP AgriChem, Strong Growth, Low PEG, High ROE

Jun 10, 2008 08:40 PM GMT
Return Risk
-48.88% MID
Analyst

Fundamental Analysis  

Small CAP in the AgriChem Industry (One of the fastest growing Industries), Strong Growth in Revenues and EPS, Low PEG, and High ROE.

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KMG Chemicals, Inc., through its wholly owned subsidiaries, engages in the manufacture, formulation, and distribution of specialty chemicals principally in the United States. It operates in four segments: Penta Products, Creosote, Animal Health Pesticides, and Agricultural Chemicals. Penta Products segment offers penta blocks, flakes, solutions, sodium penta, and hydrochloric acid, a byproduct of penta production. Penta is used primarily to treat electric and telephone utility poles, protecting them from insect damage and decay. Creosote segment sells creosote products as a wood preservative for railroad crossties and utility poles. Animal Health Pesticides segment offers oral larvicides, ear tags, sprays, and dust products to protect cattle, swine, and poultry from flies and other pests. It markets pesticides products under the trade names Rabon, Ravap, Patriot, and Annihilator. Agricultural Chemicals segment sells products containing monosodium and disodium methanearsonic acids. These herbicides are sold to protect cotton crops, primarily in the United States' southern cotton-growing states, as well as to state agencies to control highway weed growth. In addition, KMG Chemicals offers high-purity process chemicals that are used to clean, etch, and otherwise prepare the surface of semiconductor products. The company was founded in 1992 and is based in Houston, Texas
% of Shares Held by All Insider and 5% Owners: 45%
% of Shares Held by Institutional & Mutual Fund Owners: 42%
% of Float Held by Institutional & Mutual Fund Owners: 76%
Number of Institutions Holding Shares: 40


KMGB:  This call was made on 06/10/08 @ $10.235
Rating:   Positive   $10.235 (06/10/08)
Closed:   06/30/2008 @ $10.31 (+0.73% in 20 days)
Target:   $13.50 (+31.90%) in > one year
Allocation:   42.0% of portfolio


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