January 6, 2009

Air Products - Long Term Play

Air Products (APD) 
Copied post from Updown.com Analysis:

Posted 912 days ago on 10/05/08
APD will go UP
$85.00 on 10/05/09
$92.30 (45.65% from time of market call)

I am reopening an older analysis because the broad market weakness and fall in oil prices have smashed this company's stock price. Air Products and Chemicals is a specialty gases company (primarily) but it also has large stakes in emerging industries that use carbon fibers, nanotechnology and hydrogen fuel applications. This company has paid out dividends regularly for about 25 years with modest increases in the dividend payout over time. Some of the negative factors against the company are reduced spending by other businesses (which draws down APD's earnings) and the strengthening dollar. Also if you look at the sector, APD's main competitor, Praxair (PX) has also been performing barely ok,in fact it is lagging the indices. However, at these valuations (~$64-66 range) the stock looks beaten down so I am not afraid to pick up some for long term or for short term trading. As always do your own additional due diligence. I intend to open a long postion this week in the 63-66 range if the broad market does not tank,

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