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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Sergio H who wrote (44426)	9/20/2011 3:06:08 PM
From: E_K_S	Read Replies (3) \| Respond to of 78705

Re: Aerogel Hi Sergio: After a brief search, it appears that Aerogel has been around and tested in the use of several applications since the 1930's. Two specific applications came to my mind: (1) Fuel Cell membrane/Catalysts "container" and (2) Hydrogen storage "container". Two companies I own Corning and DuPont have patents for products and/or manufacturing process for the use of Aerogel, aerogel.nmcnetlink.com From the article:"...Following the success of the new found process, Armstrong, Hoechst, Dow Corning, NanoPore and Cabot all start programs to develop a commercial, large-scale process for manufacturing aero gels. While these companies are testing for versatility of the product, marketing studies are conducted to confirm the value of the aero gel to industries. Beginning in 1996 and continuing into 1998, Dow Corning, Hoechst and Cabot develop independent variations of the “silation technology” used to make aero gels. All three companies file a series of patents for their new processes, and for potential applications for aero gels...." ------------------------------------------------------------------------------------------------------ I guess I would bet on well capitalized large conglomerates to industrialize "aero gel" into their manufacturing processes. DuPont and Corning are two companies I own that have patents. Cabot Corp. (CBT) may be the best "pure" play. As a value candidate, they look attractive. finance.yahoo.com With a 9 PE (forward PE at 8), Less than 2.5X's LT debt to net annual income reflecting a low risk debt profile and pays a 2.1% dividend (only 21% payout ratio). With some recent insider sells in May 2010 at $42.50/share, a $30.50/share may provide a reasonable entry point. I will add CBT to my watch list. Jefferies came out yesterday with a downgrade on the company and suggest waiting for a few months before buying shares. The other chemical company I am looking to buy is DOW as I like their AG business. Maybe Paul has some thoughts on some value and/or speculative plays for aero gel and it's development. EKS

To: Sergio H who wrote (44426)	9/20/2011 7:02:16 PM
From: Paul Senior	Read Replies (1) \| Respond to of 78705

I looked quickly at "aerogels", and I will agree with you: "Aerogel, known as frozen smoke, is in its infancy as far as it commercial potential". That said, we diverge: Apparently you are trying to get in on the ground floor. Okay. For me though - where I believe I see so many downtrodden companies with good sales and profits -- I ask myself, why bother investing/betting on aerogels and why now? So I'll pass. Jmo. I could be wrong. I've been wrong many, many times.