This unknown name has caught investors by surprise

Balchem, which saw shares soar this week, has cornered the area of nutrients for human and animal food.

By Motley Fool Investor Beat Apr 3, 2014 5:17PM
Shares of Balchem Corp (BCPC) jumped 23 percent this week, a move that caught many investors by surprise for this quiet and less-discussed company.

Balchem develops and manufactures key nutrients as ingredients for both human and animal food, such as choline, also known as vitamin B4. The company popped big this week on the market after the announcement of its acquisition of Specialty Effects, a company whose model and technology fit in extremely well with Balchem's current offerings.
This is an enormous acquisition for Balchem, as Specialty Effects represents approximately 35 percent of Balchem's current size. The deal is all cash as well, which shows a lot of confidence by management that the acquisition will be immediately accretive to earnings.Credit: © photontrappist/Flickr/Getty Images
Caption: File photos of pigs in the UK

In this video from today's Stock of the Day, host Mark Reeth and Motley Fool analyst Sara Hov talk investors through this lesser-followed business and its massive acquisition this week. Sara also discusses why even after the 23 percent price jump, she still loves the business and its growth prospects from here. She tells investors several reasons why Balchem taking on debt to fund this cash acquisition doesn't worry her, why she sees the acquisition as a great one, and why the stock is a buy today.

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Tags: BCPC
3Comments
Apr 4, 2014 3:38PM
avatar
The Dow was bailed out all week, now the deadbeats in the ivory towers are cashing it out. It's just terrorism. Close the banks, end the Federal Reserve and get RID of Wall Street.
Apr 4, 2014 6:17AM
avatar
So why does it need to be publicly traded on Wall Street? If it's a good company with a great niche and room to grow, going public exposes it to toxic oversight. Just more crap in a pan full of it. 
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