Thursday, June 19, 2008

Rendering a new stock


Many of the stocks we highlight at ITM are very high priced and somewhat volatile. With the market acting like a yo-yo or slinky we decided to add a nice steady mover to the portfolio. Darling International Ltd. (DAR), was "green when green was just a color". The company has been around since 1882 and has solid fundamentals and management. Darling is in the business of rendering, recycling and recovery solutions to the nation's food industry. Basically, they take the used cooking oils and leftover animal waste from restaurants and turn it back into useful products (jet fuel, tires, paint etc.). They have recently started selling into the biofuel market which has started to gain interest in the investment community.The quarterly revenue growth (yoy) is up 45.70% and the quarterly earnings growth (yoy) is up 124%. The stock is trading around $17 and we feel that it is a steady mover that fits perfectly in any portfolio.


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