08:21 GROWX IBD 100 profile: ICO Inc. (ICOC) makes impressive debut at #9; reminds us of HDNG (15.65 )
As part of our new series in profiling IBD 100 stocks, today we take a look at ICO Inc. (ICOC), which made its IBD 100 debut this week at a very impressive #9. We profiled the stock a year ago at $6.41 (+144%) and originally at $3.71 in Jan 2006 (+320%), so we thought it was time to update the name now that its appearance on the IBD will provide more exposure. ICOC is a producer of custom polymer powders and plastic film concentrates. In simple terms, the co grinds and blends polymer resin pellets (primarily polyethylene) into powders that are used to make paint and plastic products such as toys, garbage bags, and plastic film. The company also processes resins for desired characteristics such as color and UV protection. Customers include chemical companies and plastics and polymers manufacturers.... There is not a lot of information available on the company. However, it is profitable and posted Q3 (Jun) revenue of $113.4 mln, up 38% yr/yr and an impressive 20% sequentially (reported Aug 7). The co described JunQ as a "tremendous record-setting quarter." Bottom line: A top 10 IBD debut should give this lesser known name some much needed exposure as there are just two analysts covering the stock. There is not a lot of information available on ICOC, but it's an interesting small cap name in a hot industrial sector. It reminds us a bit of HDNG, another industrial stock we profiled May 9 at $28.14. It hit $40 by early July. Both are industrial stocks nobody knew about until it hit the IBD 100 and then went on to post strong gains.... Also, Bear Stearns filed a 13g last week announcing a 10.6% stake in ICOC. Note, co is expected to report Q4 (Sep) results in early Dec, although it's a seasonally slower qtr. Just to keep in the back of your mind, if the stock closes below $15 on Friday, it falls off the IBD 100. Mkt cap $411 mln, float 22 mln, avg vol 425K. (PROFX) |
