Editor's note: This column was submitted by Stockpickr member Winston Kotzan.
Chemicals company NewMarket(NEU Quote) delves in a mix of businesses, but is the combination a lucrative play for speculative investors or just too volatile a mix?
Virginia-based NewMarket operates two subsidiaries, Afton Chemical and Ethyl Corp. Its Ethyl business primarily produces and sells tetraethyl lead (TEL), a gasoline additive that reduces engine "knock." Tetraethyl lead is known to be a deadly chemical that is hazardous to the environment and has been gradually outlawed in the U.S. through legislation beginning in the 1970s.
Most of Ethyl's sales are in countries other than the U.S. where the use of tetraethyl lead is still legal. Management and industry analysts widely accept that this business is in decline and that revenue from this source is expected to shrink. ...
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