Long Position on SCL @ $61.00 on 6/13/2016 (Momentum)

Double Bottom on SCLStepan Company (SCL) produces and sells specialty and intermediate chemicals to manufacturers for use in various end products worldwide.

It operates in three segments: Surfactants, Polymers, and Specialty Products.

The Surfactants segment offers surfactants that are used as principal ingredients in consumer and industrial cleaning products such as detergents for washing clothes, dishes, carpets, floors, and walls, as well as shampoos and body washes; and other applications, including fabric softeners, germicidal quaternary compounds, and lubricating ingredients, as well as emulsifiers for spreading agricultural products and industrial applications, such as latex systems, plastics, and composites.

The Polymers segment provides polyurethane polyols that are used in the manufacture of rigid foam for thermal insulation in the construction industry, as well as a base raw material for coatings, adhesives, sealants and elastomers, and flexible foams; polyester resins, including liquid and powdered resins, which are used in CASE and polyurethane systems house applications; and phthalic anhydride that is used in unsaturated polyester resins, alkyd resins, and plasticizers for applications in construction materials and components of automotive, boating, and other consumer products.

The Specialty Products segment offers flavors, emulsifiers, and solubilizers for use in the food, flavoring, nutritional supplement, and pharmaceutical applications. 

Shares have formed a bullish "double bottom" formation and higher share prices are expected for this stock. 

 

52-Weeks Trading Range: $40.49 - $63.32

Entry Point: $61.00

Stop Loss: $57.95

Target Price: $67.10       

Updates

7/18/2016 12:47:55 PM

SCL closed at $62.24

Position closed on 7/18/2016 at price of $62.24 with a 2.03% gain in 35 days.

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