This chemical company’s stock was also recently recommended by Zacks, who cited the company’s rising earnings.
Balchem Corporation (BCPC)
From Positive Patterns
Balchem Corporation (BCPC) has been one of our best performers over a long period of time. BCPC has been in a significant correction recently, the first one in years. BCPC had a nice, long rally from $8 in 2004 to $123 last year.
Balchem has made our clients a lot of money and along the way we did some selling. Now it’s back to a decent buy area.
BCPC develops, makes, and markets all sorts of specialty performance ingredients for the food, nutritional, pharma, medical, animal health and feed markets. It also has a good niche in the sterilization business.
Revenue is broken down as follows: Human Health/Sensory-Related, 55%; Animal Health/Nutrition, 26%; Specialty Products, 11%; and Industrial Products, 8%.
One place where BCPC has made a profitable inroad/niche is into the Choline business. BCPC is presently trying to find ways to monetize the fact that Choline is recognized as something that can play a key role in the development and structural integrity of brain cell-membranes in young babies. It is believed to help not only reproductive development, but even neural functions like memory and muscle function as well. Many of the products that BCPC makes in this area (mineral/amino-acid chelates) have applications that help humans/be more-healthy. BCPC thinks it can find lots of new/growth ideas for this product.
Twenty years-ago, BCPC had a market cap of about $43 Million and today it’s about $2.9 billion.
At the current price (17 times cash flow), I think BCPC is back in a good buy area. For BCPC, 17-18 times cash flow (in my opinion) is about as cheap as you are going to get an A+/growth stock like BCPC. Below $90 BCPC is a good buy for those looking for growth stocks.
BCPC is an impressive growth story and still totally obscure.
Bob Howard, Positive Patterns, P.O. Box 310, Turners, MO 65765, 417-887-4486, March 1, 2019