If you're looking for an investment to remove the squeaks from your portfolio, you might check out WD-40 ( WDFC).

There aren't a lot of companies where the name says it all, but it's true at this San Diego-based maker of the famed lubricant. I remember my grandfather -- a fine carpenter in his time -- saying that if something squeaked, WD-40 was sure to be the cure. Although the company has expanded beyond the aerosol-based petroleum lubricant, the product remains its primary brand.

Squeaky Clean

Besides its namesake brand, the company also markets 3-in-One oil, a product similar to WD-40 with many household uses. It recently launched 3-in-One Professional, a slightly more heavy-duty version that should help the company capture more of the commercial market for basic lubricants.

However, the company's more recent expansion is into hand-cleaning products and household cleaners, where it has amassed a nice stable of brand names. In the heavy-duty hand cleaners, WD-40 peddles Lava and Solvol, which are both relatively high-margin.

In the household cleaner market, WD-40 owns X-14, 2000 Flushes and Carpet Fresh. More recently, the company acquired Spot Shot, a remarkable solvent (I can say from experience) that will remove just about any stain on upholstery or carpet. These higher-end products can be cross-marketed to both residential and commercial users.

The promotional costs of establishing brand loyalty and building scale in these names has caused some expense creep, but management has done a relatively good job of controlling costs and has recently increased its focus on efficiency. That should begin to translate into better margins over the next several quarters.

While WD-40 isn't likely to steal major market share from the big consumer-products companies in the personal and household cleaner markets, it should be able to hold its own with a more modest promotional budget, especially in the high-end consumer and commercial markets. Opportunities also exist in international markets, where meaningful growth was seen in the company's most recent quarterly report, especially in Europe and Asia. (The company's fiscal year ends Aug. 31.)

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