Primary Recommendations

Elementis - Specialty chemicals group an intriguing “opening up” play

April 2022

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.

Old timers may recall I previously wrote on Elementis, a speciality chemicals business occupying highly profitable niches, at 156p in April 2011 and the shares went on to hit a high of 280p in 2015. The business is best known for making additives that enhance the look, feel and stability of industrial paints, coatings and personal care products and it lays claim to ownership of the world’s only hectorite clay mine that produces the key raw material (a rare soft, greasy, white clay material) for these products. The “moat” around this raw material has underwritten high teens operating margins, consistent sales and strong cash flow. Alongside this, it has also made a foray into anti-perspirant raw materials and industrial talc via acquisiti ...

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Babcock - Defence firm with contracted orders covering 70% sales on PE of just 9.2

Somero - US sales rise 51%, PE just 10.9

Elementis (October 2024)

Elementis - Disposals boost specialty chemicals firm’s margins (March 2024)

Elementis - Sale of Chromium side will enhance margins (January 2023)

Elementis - Results near top end of expectations (September 2022)

Elementis (June 2022)

Elementis (May 2019)

Elementis (November 2018)

Elementis - Personal care acquisition transforms growth prospects (May 2018)

Elementis - Personal care acquisition transforms prospects (April 2018)

Elementis (August 2015)

Elementis (April 2015)

Elementis - Net cash to reach US$110m in 2016 (September 2014)

Elementis (April 2014)

Elementis (December 2013)

Elementis (October 2013)

Elementis - Specialty chemicals firm enjoys high margins and returns on capital (May 2013)

Elementis - Expands capacity in buoyant US (November 2012)

Elementis - New special dividend (September 2012)

Elementis - Eyes return of cash to shareholders (June 2012)

Elementis - Fast-growing additives group throwing off copious amounts of cash (May 2012)

Elementis (December 2011)

Elementis - Hefty broker upgrade makes shares very cheap (September 2011)

Elementis - Euro 23m fine is repealed (August 2011)

Elementis - 13% profit upgrade (June 2011)

Elementis - Huge Asian opportunity for specialty chemicals group (April 2011)

Elementis - A jewel in the specialist chemicals sector (February 2011)

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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