Recent buyer of ACO; I was checking cash flows on ACP and typed ACO by mistake and after a couple of calls and calculations I was very impressed by Amcol. What do you guys think the future of this company is?
I see ACO as a combination between the cyclical metals/steel business and the more steady environmental business. The transportation business seems to exist to support the other service lines and does not really drive growth.
ACO also provides a nanotech play (plastic packaging and components) with its Nanocor business. This unit could be important in the future as it moves towards becomming an actual profit generating part of the business. They have good intellectual property with numerous patents. As such, ACO provides (at least in my mind) one of the safer nanotech plays out there.
ACO could see an uptick from its environmental units due to hurricane rebuilding. Its products are used in a variety of water sealing applications (liners for landfills, drilling products, cut off walls, water treatment etc.)
ACO has increased dividends on a fairly regular basis and has been successful in providing organic growth.
Thank you very much for your posting. It was very informative. I was checking reports for ACO today and saw in a "Real Money Recap" that ACO has "a history of being promotional." I'm not sure what others got out of that comment. I was looking at the level 2 and saw an abnormal amount of sellers today. Any comments?