Part 16 (1/2)

Reasons for Caution

For many, nuclear power is a reason for caution, and we certainly would want to diversify utility holdings to avoid overexposure to utilities with nuclear facilities Like row revenues, and so the regulatory environress acquisition would create size and critical mass butand perhaps too reliant on acquisitions to fuel growth That said, the coed to take on such an endeavor

GROWTH AND INCOME

E I DuPont De Ne: A Value Line financial strength rating: A++ Current yield: 53

Coan and rallying cry of this 30 billionplus science and technology juggernaut originally founded in 1802 to h the company is known toa host of rather lifeless cheredients,as a world leader in science and technology with ie of disciplines, including biotechnology, electronics materials and science, safety and security, and synthetic fibers The co to their business as ”market-driven science,” reflected in 2009's introduction of over 1,400 new products and rants The coy leader with such well-known inventions as Nylon and Rayon in earlier years, and Teflon and Kevlar more recently, but at least until recently has been taken in ns of change in that reputation

In 2009, the coned its businesses into several rowth platfor segment seen to approach 2830 percent of sales with brands like Pioneer seeds and a host of insect protection and other systeo;company either But the 2011 acquisition announcement for Denredients, additives, and enzy business, now projected at 35 percent of sales going forward

Safety and Protectionbulletproof apparel and disinfectants

Health Care & Medical specializes in protection apparel, disinfectants, and protective building surfaces

Electronic and Coh-techcera Materials sells such ubiquitous brands as Tyvek housewrap and Corian countertops

And the core businesses:

Performance Ches

The company has operations in ninety countries ide and about 60 percent of consolidated net sales are made to customers outside the United States Worldwide subsidiaries and affiliates of DuPont conductactivities, and some are distributors of products est R&D budgets of any company in the world and operates more than seventy-five R&D centers ide DuPont's core research is concentrated at its Wilton, Delaware, facilities DuPont's modern research is focused on renewable bio-based ies, enhanced safety products, and alternative energy technologies

Financial Highlights, Fiscal Year 2010

A few years ago, the cos at 350 per share, up froested that toptest But the truth of the oal a year early Core businesses are rebounding with the rebound in the auto industry and others, and the newer businesses and products are growing and er contribution One analyst now estirowth” businesses and products

Further, the CEO now projects annual revenue growth of 7 percent and earnings growth of 12 percent during the 20102015 timefra in its efforts to reinvent itself as an innovation leader, and to capitalize equally on innovation and product leadershi+p in established categories Not that this company doesn't have experience with innovationquite the opposite, in factthe problenized for its innovation The product pipeline continues to be full, individual product est moneymakers still dominate their rowing science corowth, alternative energy production, and so forth The improvement of ide food production is at the center of its neth initiatives Alternative energy will also get the spotlight: The Danisco acquisition is, as, a major play in the synthetic cellulosic biofuels market with its Genencor industrial enzyovernallons of annual cellulosic biofuel production by 2017

In short, this co on all cylinders, especially in tery leadershi+p The 33 percent dividend yield provides an added s to really coether

Reasons for Caution

For whatever reasonane may be one of themthe company has seldoy” positioning, and is viewed as a commodity producer instead We'll see if it's any different this tihter prospects, and has been relatively strong, particularly in comparison to its 2009 low of 16 Buyers should look for dips

CONSERVATIVE GROWTH

Ecolab, Inc

Ticker syth rating: A Current yield: 15

Colobal leader in co, food safety, and infection prevention Founded in 1923 and headquartered in St Paul, Minnesota, Ecolab serves customers in more than 160 countries across North America, Europe, Asia and the Pacific, Latin America, the Middle East, and Africa, and employs rams and services to industries such as foodservice, food and beverage processing, hospitality, health care, government and education, retail, vehicle care, pest elimination, and facilities maintenance

The co provider of cleaners and sanitizers for utensils, laundry, kitchen cleaning and general housecleaning, product-dispensing equip racks and related kitchen sundries to the foodservice, lodging, and health care industries It also provides products and services for pool and spa treat and sanitizing products and services to fare processors, and pharest supplier of cleaning and sanitizing products for the quick-service restaurant, convenience store, and food retail markets