Category Archives: ECL

Quick Take: Ecolab Inc.

On March 11, 2016, we did a review of Ecolab providing the following conclusion:

“With the stock already trading below most fundamental averages, a purchase plan at the current level and lower would be ideal.  A three-part purchase plan at the current price (50%), at the ascending $83.03 level (25%) and approximately at the ascending $61.91 level (25% would be acceptable.”

Since our posting last year, Ecolab (ECL) has increased +17.57%.  This isn’t proof of the quality of analysis, however, we believe our updated could provided insight for future developments related to the directions of the stock price.

We will review the December 14, 2007 Value Line Investment Survey and compare their 2010-2012 projections and see how Value Line’s estimates were far short of their own expectations.  Afterwards, we will review Value Line Investment Survey’s March 3, 2017 numbers and projections and see how their estimates stack up going forward.

Finally, we’ll revisit the technicals that we presented last year and see how that has played out and potential outcomes going forward.

Quick Take: Ecolab Inc.

According to Yahoo!Finance, Ecolab Inc. (ECL), “…provides water, hygiene, and energy technologies and services for customers worldwide. The company operates in three segments: Global Industrial, Global Institutional, and Global Energy. The Global Industrial segment provides water treatment and process applications, and cleaning and sanitizing solutions primarily to large industrial customers within the manufacturing, food and beverage processing, chemical, mining and primary metals, power generation, pulp and paper, and commercial laundry industries.”

Since the bottom that occurred in the stock market in March 2009, Ecolab Inc. has outpaced the recovery in the Dow Jones Industrial Average by +94% and the S&P 500 by +66%.  At some point the pendulum needs to swing in the opposite direction.  It is our goal to point out the potential scenarios that are most plausible for the reaction that is to come for ECL.  First, we’ll cover some important fundamentals and what they indicate and then we’ll cover the topic of technical aspects of downside risk.

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