Long Position on OEC @ $34.90 on 8/10/2018 (Momentum)

Orion Engineered Carbons S.A. (OEC) produces and sells carbon black products in Germany, the United States, South Korea, Brazil, China, South Africa, the rest of Europe, and internationally.

It operates through two segments, Specialty Carbon Black and Rubber Carbon Black.

The company offers post-treated specialty carbon black grades for coatings and printing applications; and various conductive carbon black grades for use in polymer and printing applications, as well as in silicon, non-woven textile, building material, battery electrodes metallurgical, agrochemical, and carbon brush applications.

It also provides rubber carbon black products for applications in mechanical rubber goods under the PUREX brand, as well as in tires under the ECORAX brand name. 

Shares have formed a bullish "cup and handle" following the company's latest quarterly report. Earnings soared 72% and revenue leapt 19%. In the company's second-quarter conference call, the CEO said, "If oil prices continue to move sideways, foreign exchange stays more or less steady, and assuming demand remains as strong as it was in the first half of the year, we are well positioned for a solid 2018." Higher share prices are expected for this stock.

Entry Point: $34.90

Stop Loss: $33.10

52-Weeks Trading Range: $19.90 - $36.55

Target Price: $38.39

Updates

2/25/2019 12:04:50 PM

Closed at $28.25

Position closed on 2/25/2019 at price of $28.25 with a -19.05% loss in 199 days.

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