Long Position on SCL @ $54.95 on 12/28/2012 (Momentum)

Stepan Company (SCL) engages in the production and sale of specialty and intermediate chemicals to manufacturers in various industries worldwide.

The company produces and sells surfactants that are used as principal ingredients in consumer and industrial cleaning products, such as detergents for washing clothes, dishes, carpets, floors, and walls; shampoos, body washes, toothpastes, and fabric softeners; and germicidal quaternary compounds, lubricating ingredients, emulsifiers, plastics and composites, and biodiesel.

It also offers polymers, including polyols that are used in the manufacture of rigid laminate insulation board for thermal insulation in the construction industry, as well as a base raw material for flexible foams, coatings, adhesives, sealants, and elastomers; and phthalic anhydride, which is used in unsaturated polyester resins, alkyd resins, and plasticizers for applications in construction materials, as well as components of automotive, boating, and other consumer products.

In addition, the company provides specialty products comprising flavors, emulsifiers, and solubilizers that are used in the food and pharmaceutical industries; and a range of nutritional fats for the food, supplement, and nutrition industries. 

Shares have formed a bullish "flag" and higher prices are expected for this stock.

52-Week Trading Range:   $38.05 - $55.23

Entry Point:  $54.95

Stop Loss:  $52.20

Target Price:  $60.45

Position closed on 1/28/2013 at price of $58.38 with a 6.24% gain in 31 days.

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