Date: Sunday 30 Oct 2011
Specialty chemicals manufacturer Croda operates quite a diverse range of business lines, spanning from ingredients for cosmetics, to chemical dispersants or food additives. Yet perhaps the most important thing about the company is its strategy of concentrating on ‘high margin’ niche markets. Amongst other reasons, that seems to be why the Questor team, at the Sunday Telegraph, believes that the poor price performance put in by the company´s shares, following its third quarter trading update, is a bit of an overreaction. Thus, Questor believes that investors put too much weight on the 14% fall seen in sales volumes. Part of that fall was due to outsized demand in 2010 from BP for the firm´s chemical dispersants. The company´s emphasis on margins seems to explain part of the rest. In fact, margins in consumer care rose significantly last quarter. As well, Croda may soon receive good news on both its food and cosmetic lines. “Trading on a December 2011 earnings multiple of 15, falling to 14.1, the shares remain a buy,” Questor concludes.
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| Currency | UK Pounds |
| Share Price | 23.88p |
| Change Today | 0.25p |
| % Change | 1.06 % |
| 52 Week High | 43.00 |
| 52 Week Low | 21.50 |
| Volume | 86,024 |
| Shares Issued | 64.99m |
| Market Cap | £15.52m |
| Beta | 0.69 |
| RiskGrade | 252 |
| Value |
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| Price Trend |
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| Income | ![]() |
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| Growth | ![]() |
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| No dividends found |
| Time | Volume / Share Price |
| 15:54 | 41,930 @ 22.75p |
| 16:18 | 4,214 @ 23.34p |
| 15:53 | 20,000 @ 23.34p |
| 15:53 | 10,000 @ 23.33p |
| 13:55 | 3,590 @ 22.57p |
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