2024-05-02 03:09:26 ET
Summary
- Wacker Chemie is expected to see near-term declines due to negative earnings trends and a decline in adjusted EPS.
- The company remains solid with strong sales and a focus on specialty silicones, biotechnology, and advanced medicine.
- Despite the current financial performance, the long-term valuation implication of investing in Wacker Chemie is positive, with expected growth and potential dividends.
Dear readers/followers,
I've been covering Wacker Chemie ( WKCMF ) for some time now, and maintain a small position in this basic materials/chemicals business. While the market at this time is extremely volatile for businesses like this, my investments go into the 3-8-year ranges - at the very least, to see their relative upsides and returns. Some of the investments I have made as of late are just now getting into a position where I would consider them in a position to be "ripe" for harvesting.
Some are likely to take yet another 2-3 years before getting there.
Wacker Chemie is a business that is quite likely to see near-term detrimental results and declines, in part due to a forecast for a somewhat negative earnings trend for this year - following a very unfavorable 75% decline in adjusted EPS for the 2023 fiscal (albeit more or less expected). It also now, due to the decline, leads to a situation where the company yields actually less than what any conservative savings account gives us at this time - 3.8% for me at this time, to give a reference point....
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For further details see:
Wacker Chemie: Maintaining My Position For The Long Haul