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.
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.
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.
The Motley Fool's 12 top stocks for 2014 are now available! So if you're tired of picking stocks out of a hat and hoping that one skyrockets, check out Stocks 2014: The Investor's Guide to the Year Ahead. It's The Motley Fool's current top report, and includes Chief Investment Officer Andy Cross's top stock for 2014! This under-the-radar company is the secret winner in the war for the last precious drops of oil on the planet. Find out what it is and how you can take advantage of this unseen company's huge profits in this special, free report, just click here now.
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
The stock rises 9% after the company reveals strong second-quarter results.
VIDEO ON MSN MONEY
Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.
Contributors include professional investors and journalists affiliated with MSN Money.
Follow us on Twitter @topstocksmsn.