10 Best Chemical Stocks To Buy For 2014

A natural gas filtration system sits on top of a gas well drilled by Anadarko Petroleum Corporation in Mifflin Township, Penn.

NEW YORK (CNNMoney) Oil driller Anadarko has been ordered to pay billions of dollars in clean-up costs after a judge ruled that the firm's Kerr-McGee unit tried to shed these liabilities in a spin-off deal.

A federal bankruptcy court in New York ruled that Anadarko owes damages between $5.15 billion and $14.12 billion, with the precise amount to be determined in future legal proceedings. The Justice Department said Friday that the judgment was "one of the largest environmental enforcement awards ever."

The formerly independent Kerr-McGee operated a variety of chemical and resource extraction businesses that left contamination across the country over more than eight decades, including radioactive uranium waste in the Navajo Nation and radioactive thorium in Illinois.

Top 10 Wireless Telecom Stocks To Watch Right Now: Ashland Inc. (ASH)

Ashland Inc. operates as a specialty chemicals company in the United States and internationally. Its Ashland Aqualon Functional Ingredients segment produces cellulose ethers; and specialty additives and functional ingredients. Its products offer functionality, such as thickening and rheology control; water retention; adhesive strength; binding power; film formation; protective colloid, suspending, and emulsifying action; foam control; and pH stability. The company?s Ashland Hercules Water Technologies segment manufactures papermaking chemicals and supplies specialty chemicals. It offers sizing agents, wet/dry strength additives, and crepe and release additives for tissue manufacturing; and deposit control agents, defoamers, biocides, and other process additives. This segment also provides specialized chemicals and consulting services for the utility water treatment; and performance-based feed and control systems; and monitoring devices and remote system surveillance. Its A shland Performance Materials segment manufactures and supplies specialty chemicals and customized services to the building and construction, transportation, metal casting, packaging and converting, and marine markets. It also offers unsaturated polyester and vinyl ester resins, and gelcoats; adhesives and specialty resins; and metal casting consumables and design services. The company?s Ashland Consumer Markets segment produces and markets packaged automotive lubricants, chemicals, appearance products, antifreeze, and filters to the private passenger car, light truck, and heavy duty markets. It also operates a quick-lube franchise under the name of Valvoline Instant Oil Change. The company was founded in 1918 and is headquartered in Covington, Kentucky.

Advisors' Opinion:

• [By Seth Jayson]

  Calling all cash flows
  When you are trying to buy the market's best stocks, it's worth checking up on your companies' free cash flow once a quarter or so, to see whether it bears any relationship to the net income in the headlines. That's what we do with this series. Today, we're checking in on Ashland (NYSE: ASH  ) , whose recent revenue and earnings are plotted below.

• [By GuruFocus]

  George Soros (Trades, Portfolio) just reported his first quarter portfolio. He buys Citrix Systems Inc, Baker Hughes Inc, Comcast Corp, Spansion Inc, etc during the 3-months ended 03/31/2014, according to the most recent filings of his investment company, Soros Fund Management LLC. As of 03/31/2014, Soros Fund Management LLC owns 305 stocks with a total value of $10.1 billion. These are the details of the buys and sells.New Purchases: BHI, CODE, CTRP, CLI, AVB, COMM, CNQ, AGO, AUY, ATML, ASH, BXMT, CSTM, AEM, CMA, ARE, CHKP, AUQ, BEAV, CX, ADSK, AALCP, BLK, AIG, BIIB, ADEP, AMRI, ARWR, ATHX, BALT, BCRX, BEAT, CFX, CLFD, CUR, CODE,Added Positions: CTXS, CMCSA, CNP, ALTR, BRCD, CBS, CRM, CHTR, CCJ, CIEN, BIDU, ALLE, ABT, CDNS, ACT,Reduced Positions: AAPL, CCI, AMT, ABBV, AAL, BITA, AL, ANGI, ARIA, CBST, BA, BIRT, EXAR,Sold Out: C, BAC, CRI, AMZN, AGN, CF, BRCM, COTY, BMY, AMCX, CAR, A, ADBE, AFL,For the details of George Soros (Trades, Portfolio)'s stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=George+SorosThis is the sector weightings of his portfolio:Technology18.9%Energy14%Healthcare8.3%Consumer Defensive8.2%Communication Services8.1%Consumer Cyclical5.4%Industrials5.1%Basic Materials4.9%Financial Services2.5%Real Estate1.9%Utilities0.5%These are the top 5 holdings of George Soros (Trades, Portfolio)1. Teva Pharmaceutical Industries Ltd (TEVA) - 10,310,041 shares, 5.4% of the total portfolio. Shares added by 10.67%2. Herbalife Ltd (HLF) - 4,901,337 shares, 2.8% of the total portfolio. Shares added by 52.9%3. EQT Corp (EQT) - 2,573,814 shares, 2.5% of the total portfolio. Shares added by 3.27%4. Adecoagro SA (AGRO) - 25,915,076 shares, 2.1% of the total portfolio.5. Halliburton Co (HAL) - 3,596,353 shares, 2.1% of the total portfolio. Shares reduced by 20.73%New Purchase: Baker Hughes Inc (BHI)George Soros (Trades, Portfolio) initiated holdings in Baker Hughes Inc. His purchase prices were between $51.82 and $65.27, with an estimated

• [By Victor Selva] ow such a promising comeback, and the drop in revenue during 2012 was anticipated by investor Jean-Marie Eveillard (Trades, Portfolio), who sold out his 3.9 million share position by the third quarter of that year.

  Another industry giant, Huntsman Corporation (HUN) did show more promising results, and less volatile revenues during these last years. This, of course, has led to a high price to earnings ratio discouraging investors as we see later.

  Geographically Diversified

  On 2012, almost 50% of Eastman sales were generated in North America, while more than 25% were in Asia and 20% in Europe, Middle East and Africa. This diversification is to be taken into account since it guarantees long-term revenue, even if cigarette consumption decreases in some specific region (for instance, American sales declined �in recent years), which would stabilize acetate tow demands worldwide.

  Industrial Background and Gurus��Preference

  Eastman�� earnings per share growth was significantly higher than industry median (46.9% vs. 5.2%) but so was Huntsman��, at 46.5%. The critical difference between these two industry giants stands out by looking at their price to earnings: Eastman�� is below median (16.4 vs. 19.1) while Huntsman rose up to 130.1, thus entailing a significant price premium relative to industry peers��average.

  Although Ashland does have an inferior price to earnings ratio than Eastman�� (11.5), there�� a significant difference in their earnings per share growth: 27%, probably caused by a decline in revenue.

  This might have been one of the reasons that motivated investors David Dreman (Trades, Portfolio) and Joel Greenblatt (Trades, Portfolio) to significantly reduce their stake in Huntsman (both of them by more than 80% margin). In contrast, Leon Cooperman (Trades, Portfolio) and Scott Black (Trades, Portfolio), reinforced their positions in Eastman. Most notably, Ray Dalio (Trades, Portfolio)

10 Best Chemical Stocks To Buy For 2014: ICL Israel Chemicals Ltd (ICL)

ICL Israel Chemicals Ltd (ICL) is an Israel-based company, engaged in the fertilizer and specialty chemical sectors. The company operates in three segments: Fertilizers, Industrial Products, and Performance Products. The Fertilizers segment is engaged in the production of standard, granular, fine red and white potash from three sources, as well as in the production of phosphates, such as phosphate rock, phosphoric acid, fertilizers and animal feed addictives. The Industrial Products segment produces flame retardants, such as brominates and organ phosphorus; elemental bromine, and other chemicals. In addition the Performance Products segment produces specialty phosphates, such as technical, food grade and electronic grade phosphoric acid, phosphate salts, food additives and wildfire safety products, as well as alumina and other chemicals. Advisors' Opinion:

• [By Gwen Ackerman]

  Israel Chemicals Ltd. (ICL), the fourth-largest potash producer in the world by sales, is weighing on the Tel Aviv benchmark stock index on concern the government will exact higher royalties amid a global oversupply.

10 Best Chemical Stocks To Buy For 2014: OCI Partners LP (OCIP)

OCI Partners LP, incorporated on February 07, 2013, owns and operates an integrated methanol and ammonia production facility that is strategically located on the Texas Gulf Coast near Beaumont. The Company is a methanol producer in the United States with an annual methanol production capacity of approximately 730,000 metric tons and an annual ammonia production capacity of approximately 265,000 metric tons, and it is in the early stages of a debottlenecking project that increases its annual methanol production capacity by 25% to approximately 912,500 metric tons and its annual ammonia production capacity by 15% to approximately 305,000 metric tons.

Both methanol and ammonia are global commodities that are essential building blocks for numerous end-use products. Methanol is a liquid petrochemical that is used in a variety of industrial and energy-related applications. Methanol is used in industrial applications to produce adhesives used in manufacturing wood products, such as plywood, particle board and laminates, resins to treat paper and plastic products, paint and varnish removers, solvents for the textile industry and polyester fibers for clothing and carpeting. Methanol is also used outside of the United States as a direct fuel for automobile engines, as a fuel blended with gasoline and as an octane booster in reformulated gasoline. In the United States, ammonia is primarily used as a feedstock to produce nitrogen fertilizers, such as urea and ammonium sulfate, and is also directly applied to soil as a fertilizer. In addition, ammonia is widely used in industrial applications, particularly in the Texas Gulf Coast market, including in the production of plastics, synthetic fibers, resins and numerous other chemical compounds.

Advisors' Opinion:

• [By Robert Rapier]

  Rounding out the bottom five were�OCI Partners�(NYSE: OCIP), a methanol and ammonia producer (-24 percent YTD),�Natural Resource Partners�(NYSE: NRP), another coal producer (-19 percent), and�Eagle Rock Energy Partners�(NASDAQ: EROC), an oil and gas production partnership (-17 percent).

• [By Robert Rapier]

  Also speaking will be the leaders of some of the world�� leading methanol producers. Among them will be Egyptian billionaire Nassef Sawiris, the CEO of Orascom Construction Industries (OCI N.V.), a Netherlands-listed chemicals, fertilizer and construction conglomerate. OCI also happens to be the sponsor of OCI Partners (NYSE: OCIP), a master limited partnership (MLP) producing methanol and ammonia at a single plant on the Texas Gulf coast. The facility was mothballed in 2004 amid high natural gas prices, and restarted in 2012 by OCI N.V.

• [By Robert Rapier]

  OCI Partners (Nasdaq: OCIP) owns and operates OCI Beaumont, an integrated methanol and ammonia production facility on the Texas Gulf Coast. OCI Beaumont has a methanol production capacity of 730,000 metric tons (MT) per year and an ammonia production capacity of 265,000 MT per year. The facility is in the middle of a debottlenecking project that will increase its annual methanol production capacity by 25 percent and its annual ammonia production capacity by 15 percent.

10 Best Chemical Stocks To Buy For 2014: Balchem Corp (BCPC)

Balchem Corporation incorporated on Jan 30, 1967, is engaged in the development, manufacture and marketing of specialty performance ingredients and products for the food, nutritional, feed, pharmaceutical and medical sterilization industries. The Company operates in three segments: Specialty Products, Food, Pharma & Nutrition and Animal Nutrition & Health. The Company sells its products through its own sales force, independent distributors and sales agents. The Company operates five wholly owned domestic subsidiaries, such as BCP Ingredients, Inc., Aberco, Inc., Balchem BV, Balchem Trading BV and Balchem Italia Srl.

Food, Pharma & Nutrition

The Food, Pharma & Nutrition (FPN) segment provides microencapsulation solutions to a variety of applications in food, pharmaceutical and nutritional ingredients to enhance performance of nutritional fortification, processing, mixing, and packaging applications and shelf-life. Major product applications are baked goods, refrigerated and frozen dough systems, processed meats, seasoning blends, confections, and nutritional supplements. The Company also markets human grade choline nutrient products through this segment for wellness applications.

Specialty Products

The Company's Specialty Products segment operates in industry as ARC Specialty Products. Ethylene oxide, at the 100% level, is sold as a sterilant gas, primarily for use in the health care industry. It is used to sterilize a wide range of medical devices because of its versatility and effectiveness in treating hard or soft surfaces, composites, metals, tubing and different types of plastics. The Company's 100% ethylene oxide product is distributed in uniquely designed, recyclable, double-walled, stainless steel drums. Contract sterilizers, medical device manufacturers, and medical gas distributors are the Company's principal customers for this product. In addition, the Company also sells single use canisters with 100% ethylene oxide for uses in medical dev! ice sterilization.

The Company markets and sells propylene oxide as a fumigant to aids in the control of insects and microbiological spoilage and to reduce bacterial and mold contamination in shell and processed nut meats (except peanuts), processed spices, cacao beans, cocoa powder, raisins, figs and prunes. The Company distributes its propylene oxide product primarily in recyclable, single-walled, carbon steel cylinders The Company also sells propylene oxide to customers seeking smaller quantities and whose requirements include utilization in various chemical synthesis applications, to make paints more durable and for manufacturing specialty starches and textile coatings.

Animal Nutrition & Health

The Company's Animal Nutrition & Health (ANH) segment provides the animal nutrition and health markets with products derived from the Company's microencapsulation, chelation, and basic choline chloride technologies. Commercial sales of REASHURE Choline, a microencapsulated choline, NITROSHURETM, a microencapsulated urea, and NIASHURETM, the Company's microencapsulated niacin for dairy cows, boosts health and milk production in transition and lactating dairy cows, delivering nutrient supplements that survive the rumen and are biologically available, providing required nutritional levels. The Company's AMINOSHURE-L product, a rumen-protected lysine for use in dairy rations, gives nutritionists and dairy producers a precise and consistent source of rumen-protected lysine. The Company also markets chelated mineral supplements for uses in animal feed throughout the world. ANH also manufactures and supplies basic choline chloride, an essential nutrient for animal health, predominantly to the poultry and swine industries. The ANH segment also includes choline and certain derivatives manufactured and sold into various industrial applications, predominately as a component for hydraulic fracturing of shale natural gas wells, and methylamines which are a primary building block fo! r the man! ufacture of choline products and are also used in a wide range of industrial applications.

Advisors' Opinion:

• [By Jake L'Ecuyer]

  Equities Trading UP
  Balchem (NASDAQ: BCPC) shares shot up 15.27 percent to $60.08 after the company announced its plans to acquire SensoryEffects for $567 million.

• [By Lisa Levin]

  Balchem (NASDAQ: BCPC) surged 13.56% to $59.19. The volume of Balchem shares traded 499% higher than normal. Balchem announced its plans to aquire SensoryEffects for $567 million.

• [By Jake L'Ecuyer]

  Equities Trading UP
  Balchem (NASDAQ: BCPC) shares shot up 14.18 percent to $59.51 after the company announced its plans to acquire SensoryEffects for $567 million.

10 Best Chemical Stocks To Buy For 2014: W. R. Grace & Co (GRA)

W.R. Grace & Co. (Grace), incorporated on August 6, 1997, is engaged in the production and sale of specialty chemicals and specialty materials on a global basis. The Company operates in three segments: Grace Catalysts Technologies; Grace Materials Technologies; and Grace Construction Products. Grace Catalysts Technologies will include catalysts and related technologies used in refining, petrochemical and other chemical manufacturing applications. Grace's Advanced Refining Technologies LLC (ART) joint venture will be managed in this segment. Grace Materials Technologies will include engineered materials, coatings and sealants used in industrial, consumer, pharmaceutical and packaging applications. Grace Construction Products will include specialty construction chemicals and specialty building materials used in commercial, infrastructure and residential construction. The Company conducts business in over 40 countries. In July 2012, the Company acquired Rheoset Industria e Comercio de Aditivos Ltda. In November 2012, the Company acquired the assets of Noblestar Catalysts Co., Ltd. In April 2013, it acquired Chemind Construction Products. In December 2013, the Company announced that it has completed the acquisition of the assets of the Polypropylene Licensing and Catalysts business of The Dow Chemical Company.

Refining Technologies

The Company is engaged in developing and manufacturing fluid catalytic cracking (FCC) catalysts and additives for petroleum refiners. Grace markets hydroprocessing catalysts primarily through ART, its joint venture with Chevron Products Company (Chevron). The Company established ART to combine its technology with that of Chevron and to develop, market and sell hydroprocessing catalysts to customers in the petroleum refining industry worldwide. Grace is a supplier of hydroprocessing catalysts designed for processing these feedstocks. The Company offers products for fixed-bed resid hydrotreating, on-stream catalyst replacement, ebullating-bed resid hydro! cracking and distillate hydrotreating processes. It also offers a full line of catalysts, customized for individual refiners, used in processing ultra-low sulfur content gasoline and diesel fuel, including its SMART Catalyst System and ApART catalyst system.

Grace provides enabling technologies that are silica- and silica-alumina-based functional additives and process aids, such as silica gel, colloidal silica, zeolitic adsorbents, precipitated silica and silica-aluminas, for a range of applications. The Company�� product portfolio includes PERKASIL, LUDOX, PHONOSORB, PHONOSORB MTX, SYLOBEAD, SYLOSIV, CRYOSIV, SAFETYSORB, PoliEdge, SYLODENT, SYLOID FP, SYLOBLANC, ELFADENT, SYLOID, DARACLAR, TriSyl, SHIELDEX, SYLOWHITE, SYLOJET, DURAFILL, LUDOX, DAREX, DARAFORM, DARASEAL, DARABLEND, Sincera, Celox, Apperta, Sistiaga, and SAFETYSORB.

Specialty Technologies

The Company is a provider of catalyst systems and catalyst supports to the polyolefins industry for a variety of polyethylene and polypropylene process technologies. These types of catalysts are used for the manufacture of polyethylene and polypropylene resins used in products such as plastic film, high-performance plastic pipe, automobile parts, household appliances and household containers. Its Magnapore polymerization catalyst is used to produce high performance polyethylene in the slurry loop process for pipe and film applications. Its POLYTRAK polymerization catalyst is used in automobile bumpers and household appliances. The Company's DAVICAT standard and customized catalysts offer a range of chemical and physical properties based on its material science technology for supported catalysts, polystyrene, herbicide, neutriceuticals and on purpose olefins. The Company's RANEY nickel, cobalt and copper hydrogenation and dehydrogenation catalysts are used for the synthesis of organic compounds for the fibers, polyurethanes, engineered plastics, pharmaceuticals, sweeteners and petroleum industries.

Gr! ace Const! ruction Products

Grace Construction Products produces and sells specialty construction chemicals and specialty building materials. It includes construction chemicals including concrete admixtures and fibers used to modify the rheology, improve the durability and enhance various other properties of concrete, mortar, masonry and other cementitious construction materials; and additives used in cement processing to improve energy efficiency in manufacturing, enhance the characteristics of finished cement and improve ease of use, and Building materials used in both new construction and renovation/repair projects. The products protect buildings and civil engineering structures from water, vapor and air penetration. The portfolio includes waterproofing membranes for commercial and residential buildings, specialty grouts for use in waterproofing and soil stabilization applications, air and vapor barriers, and other products to solve the specialized needs of preventative and repair applications.

The Company competes with Albemarle, BASF, Criterion, Haldor Topsoe, Axens, PQ/INEOS, Evonik, UOP, Altana, Waters Corporation, Agilent Technologies, Thermo-Fisher and Sika.

Advisors' Opinion:

• [By Rich Duprey]

  Yet the price spike also spurred the development of�alternatives to the metals. Toyota (NYSE: TM  ) , for example, began manufacturing cars with induction motors rather than with those using rare earth magnets, as did General Motors (NYSE: GM  ) , which noted that although they're slightly less efficient, they're also a heckuva lot cheaper to make and buy. General Electric (NYSE: GE  ) began developing wind turbine generators that relied less upon permanent-magnet machines and W.R. Grace (NYSE: GRA  ) offered fluid catalytic cracking catalysts, which oil refiners use to produce gasoline and diesel, that contained�less�lanthanum.�

• [By Johanna Bennett]

  Dow Chemical recently agreed to sell its polypropylene licensing and catalysts business to fellow chemicals company W. R. Grace & Co. (GRA) for $500 million.

• [By Selena Maranjian]

  Tiger Global Management reduced its stake in lots of companies, including specialty chemical company W. R. Grace (NYSE: GRA  ) , which is getting close to emerging from Chapter 11 bankruptcy protection. Its last earnings report featured revenue and earnings below the company's own expectations, but that didn't faze Goldman Sachs, which recently upgraded Grace stock to its Conviction Buy list, citing its cash flow and a strengthening construction market.

• [By Steve Sears]

  New stocks in what Goldman calls the “Hedge Fund VIP list,”�include Actavis (ACT), Baidu (BIDU), Berkshire Hathaway (BRK.B), Crown Castle International (CCI), Entergy Louisiana (ELB), �Equinix (EQIX), Facebook (FB), Fleetcor Technologies (FLT), W.R. Grace (GRA), MetLife (MET), Macquarie Infrastructure (MIC), Micron (MU), Time Warner Cable (TWC), and Time Warner (TWX).

10 Best Chemical Stocks To Buy For 2014: Air Products and Chemicals Inc. (APD)

Air Products and Chemicals, Inc. provides atmospheric gases, process and specialty gases, performance materials, equipment, and services worldwide. The company?s Merchant Gases segment sells atmospheric gases, such as oxygen, nitrogen, and argon; process gases, including hydrogen and helium; and medical and specialty gases for the metal, glass, chemical processing, food processing, healthcare, steel, general manufacturing, and petroleum and natural gas industries. This segment also offers respiratory therapies, home medical equipment, and infusion services primarily in Europe. Its Tonnage Gases segment provides hydrogen, carbon monoxide, nitrogen, oxygen, and syngas to the energy production and refining, chemical, and metallurgical industries; and produces dinitrotoluene used in the manufacture of a precursor of polyurethane foam. The company?s Electronics and Performance Materials segment offers nitrogen trifluoride, silane, arsine, phosphine, white ammonia, silicon tetra fluoride, carbon tetrafluoride, hexafluoromethane, critical etch gases, and tungsten hexafluoride; and tonnage gases, specialty chemicals, and services and equipment for the manufacture of silicon and compound semiconductors, thin film transistor liquid crystal displays, and photovoltaic devices. This segment also provides performance materials for a range of products, including coatings, inks, adhesives, civil engineering, personal care, institutional and industrial cleaning, mining, oil refining, and polyurethanes. Its Equipment and Energy segment designs and manufactures cryogenic equipment for air separation, hydrocarbon recovery and purification, natural gas liquefaction, and helium distribution; and offers plant design, engineering, procurement, and construction management services for the chemical and petrochemical manufacturing, oil and gas recovery and processing, and steel and primary metals processing industries. The company was founded in 1940 and is based in All entown, Pennsylvania.

Advisors' Opinion:

• [By Marc Bastow]

  Atmospheric and specialty gasses supplier Air Products & Chemicals (APD) raised its quarterly dividend 8.5% to 77 cents per share, payable May 12 to shareholders of record April 1. The increase is APD’s 32nd consecutive annual dividend raise.
  APD Dividend Yield: 2.50%

• [By Cash Flow Investor]

  Since then, I've seen the lesson of Royal Dutch Shell play out for other companies. One company I've considered from time to time is Air Products and Chemicals (APD), which shows up on the screens of many dividend growth investors. Looking at the payout ratio as traditionally calculated (i.e., dividend divided by net income), there seems to be sufficient coverage of the dividend:

• [By Ben Levisohn]

  Among the biggest losers in the S&P 500: Air Products and Chemicals (APD), which dropped 3.3% to $103.20 as its Bill Ackman bounce fades, Charles Schwab (SCHW), which fell 2.4% to $21.76 as it became the 165th most popular short in the S&P 500, and Unum Group (UNM), which finished off 2.3% at $29.63 after Barron’s Sandra Ward recommended investors take profits on the insurance company.

• [By Marshall Hargrave]

  Icahn has been the talk of the activist circle of late, overshadowing some other notable activist campaigns. It appears that a combination of Ackman's own recent shortcomings and Icahn's high-profile Apple (Nasdaq: AAPL) investment has overshadowed Ackman's activist bet on the less-than-sexy industrial space. Since Ackman announced his 9.8% ownership of Air Products (NYSE: APD) at the end of July, the stock is relatively flat.

10 Best Chemical Stocks To Buy For 2014: Olin Corp (OLN)

Olin Corporation, incorporated on August 13, 1892, is a manufacturer focused in three business segments: Chlor Alkali Products, Chemical Distribution and Winchester. Chlor Alkali Products manufactures and sells chlorine and caustic soda, hydrochloric acid, hydrogen, bleach products and potassium hydroxide. Chemical Distribution manufactures bleach products and distributes caustic soda, bleach products, potassium hydroxide and hydrochloric acid. Winchester products include sporting ammunition, reloading components, small caliber military ammunition and components, and industrial cartridges. On August 22, 2012, the Company acquired K. A. Steel Chemicals Inc. (KA Steel). KA Steel is a distributor of caustic soda in North America and manufactures and sells bleach in the Midwest.

The Company's subsidiary, Olin Canada ULC, operates one chlor alkali facility in Becancour, Quebec, which sells chlor alkali-related products within Canada and to the United States and also sells and distributes ammunition within Canada. The Company's subsidiary, Winchester Australia Limited, loads and packs sporting and industrial ammunition in Australia.

Chlor Alkali Products

The Company is engaged in the United States chlor alkali industry. Chlorine, caustic soda and hydrogen are co-produced commercially by the electrolysis of salt. These co-products are produced simultaneously, and in a fixed ratio of one ton of chlorine to 1.1 tons of caustic soda and 0.03 tons of hydrogen. The Company also manufactures and sells other chlor alkali-related products. These products include chemically processed salt, hydrochloric acid, sodium hypochlorite (bleach), hydrogen, and potassium hydroxide. The Company refers to these other chlor alkali-related products as co-products. During the year ended December 31, 2012, sales of co-products represented approximately 32% of Chlor Alkali Products' sales.

The Company's chlorine/caustic soda products are used in pulp and paper processing, chemical! manufacturing, water purification, manufacture of vinyl chloride, bleach, swimming pool chemicals and urethane chemicals. Its sodium hypochlorite are used in household cleaners, laundry bleaching, swimming pool sanitizers, semiconductors, water treatment, textiles, pulp and paper, and food processing. Its hydrochloric acid are used in steel, oil and gas, plastics, organic chemical synthesis, water and wastewater treatment, brine treatment, artificial sweeteners, pharmaceuticals, food processing, and ore and mineral processing. Its potassium hydroxide is used in fertilizer manufacturing, soaps, detergents and cleaners, battery manufacturing, food processing chemicals and deicers. Its hydrogen is used in fuel source, hydrogen peroxide and hydrochloric acid.

The Company competes with Dow Chemical Company and the Occidental Chemical Corporation.

Chemical Distribution

The Company's KA Steel comprises the Chemical Distribution segment. KA Steel is a distributor of caustic soda in North America and manufacturers and sells bleach in the Midwest. KA Steel also sells small quantities of potassium hydroxide and maintains infrastructure to be, a distributor of hydrochloric acid.

The Company competes with Univar Inc. and Brenntag AG.

Winchester

Winchester is a developer and manufacturer of small caliber ammunition for sale to domestic and international retailers (commercial customers), law enforcement agencies and domestic and international militaries. The Company's Winchester product line includes gauges and calibers of shotgun shells, rimfire and centerfire ammunition for pistols and rifles, reloading components and industrial cartridges. Its Winchester sporting ammunition, which include shot-shells, small caliber centerfire and rimfire ammunition, are used by hunters and recreational shooters, and law enforcement agencies. Its small caliber military ammunition are used in infantry and mounted weapons. Its industrial products, which i! nclude ei! ght gauge loads & powder-actuated tool loads, are used in maintenance applications in power and concrete industries and powder-actuated tools in construction industry.

The Company competes with Alliant Techsystems Inc. and Remington Arms Company, Inc.

Advisors' Opinion:

• [By Dan Dzombak]

  Olin (NYSE: OLN  ) is a chemical company that also owns Winchester Ammunition. The company distributes its ammunition under the Super X, Supreme, Supreme Elite, AA, and Winlite brand names, among others. While the company trades at a P/E ratio of 13, Winchester only makes up 20% to 25% of the business, so you are mainly investing in a chemical company. If you are looking for a pure play on firearms, you are better off looking elsewhere.

• [By James Brumley]

  Those seeking to capitalize on the now-waning firearm craze may be better off looking at ammunition makers like Olin Corporation (OLN). It got its own mania-driven sales bump in Q3, as owners of newly-purchased guns stocked up on bullets. But, at least there’s relatively stable recurring revenue in the ammo business, assuming all these recent gun buyers make occasional visits to the shooting range.