This boring chemical stock has been blowing away numbers the last few years. Today we walk you through why on Wallstrip .
Legal chemicals is a great business. Here is what Sigma sells :
Sigma-Aldrich Corporation develops, manufactures, purchases and distributes a range of biochemicals and organic chemicals. These chemical products and kits are used in scientific and genomic research, biotechnology, pharmaceutical development, the diagnosis of disease and as key components in pharmaceutical and other high-technology manufacturing. The Company operates in 35 countries, manufacturing 46,000 of the 100,000 chemical products it offers. The Company also offers 30,000 equipment products. It sells into over 165 countries. In August 2006, the Company acquired Pharmorphix Limited, which offers solid-form research services to the global pharmaceutical and biotech markets. In October 2006, Sigma-Aldrich Corporation acquired Advanced Separation Technologies Inc. (Astec), a chiral chromatography business.
Let it serve as a reminder that if you focus just on the market averages you will miss gems like this. The chemical industry has been a huge winner in the bull run of the last 4 years. This stock is by no means early in it’s trend and does not offer a great entry today unless you really can manage your stock risk. In fact, the shorts have been all over this sector trying to pick a top, likely fueling this stage of the stock move.
If you watch the all-time high list you will see many chemical related stocks. Using Google Finance, you can see all the related stocks and find a basket of stocks that fit the chemical growth bill.
Here is Brian’s take on the pricing picture for the stock:
Disclosure – No Position