Monday, January 12, 2009

Chase Corporation - CCF

Chase Corporation (CCF) is a manufacturer of specialty tapes, laminates, sealants and coatings for a number of industrial applications particularly in the automotive and electronics industries. The company recently reported disappointing first quarter results with a significant decline in revenues and EPS. However this is entirely expected in the current economic climate.

Chase Corporation (CCF) has strong conservative management and there is significant insider ownership. The company is well positioned to bounce back once the economy improves. The company has a healthy balance sheet with cash/equivalents of $4.3 million and no outstanding debt. The company will
likely benefit strongly from any infrastructure programs put in place by the incoming Obama administration.

Chase Corporation (CCF) currently trades at a trailing P/E of 8.81 and a price of $11.25. I anticipate a 12-month price target of $18 as the economic outlook improves in the second half of the year.

Disclosure: At the time of writing the author did not hold shares in Chase Corporation (CCF).

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