Trade of the Day: Long BCPC - 11/14/13 - Balchem (NASDAQ:BCPC)

Long

Balchem Corp (BCPC)

Thursday, November 14, 2013

Company Symbol Industry Rating YTD % Gain Target Stop Balchem Corp BCPC Specialty Chemicals 7.1 +49.05% $59.00 $52.09
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Stock Rating:

The Stock Rating indicates the combined score of our proprietary Earning Strength and Company Performance models. The rating scale is 0 - 10 with 10 being the highest. Balchem Corp - Last 30 Days
Balchem Corp - Last 3 Months
Balchem Corp - Last 6 Months
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The Trade:

Today, Balchem Corp (BCPC) is on the radar once again for the same reasons it was featured on October 8th: long-term up-trend dating back to November 2012, modest consolidations during the up-trend, fluid trending, and favorable entry. The stock's long-term up-trend remains as strong as ever after the stock made new all-time highs in the fourth week of October.

Since the top, it has pulled back down to just below its 50-day moving average, where it based for a few sessions, and appears to be gaining once again. This marks another higher high and higher low of its upward journey, and the stock now sits at a favorable entry point. BCPC also broke above its 5- and 10-day moving averages this week, which is a bullish sign in the short-term.

BCPC's short-term upside is overhead just above $59, which is about +8.75% higher. BCPC has a strong directional trending tendency, so this level may be tested soon considering the stock is now trending higher again in the short-term. Setting a tight stop at last Friday's open of $52.09 to limit the downside to -3.98% is recommended, making the reward to risk ratio of this trade a little over 2:1.

With a sterling technical set-up, fluid trending, high potential upside, and short-term bullish action, BCPC looks poised for a run higher.

Entery Method:

Buy at the current price (~$54.25).

Exit Method:

Sell at a close below $52.09 (Breakdown) / An intraday price of $59.00 or above (Profit-Taking)

Company Profile:

Balchem Corporation 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 Food, Pharma & Nutrition (FPN) segment provides micro-encapsulation solutions to a variety of applications in food, pharmaceutical and nutritional ingredients. 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. The Company's Animal Nutrition & Health segment provides the animal nutrition and health markets with products derived from the Company's micro-encapsulation, chelation, and basic choline chloride technologies.

Disclosure:

At the time of publication the editor and affiliated companies own the following positions: BCPC

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