Opportunity in the US Market

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Rockwood Holdings (NYSE: ROC).

Based in Princeon, NJ, Rockwood is a fast-growing specialty chemicals firm. The Company produces Titanium dioxide.

Titanium dioxide is used to make paints whiter. It is used in sunscreens to deflect harmful sunrays. And it is often found in medicines, foods and cosmetics.

But titanium dioxide is only one of many products where Rockwood is seeing rapid sales growth. The company also makes lithium for high-performance batteries. Its ceramics are used in high-end electronics and to make hip replacement joints.

And since most of its compounds are organic, Rockwood has not been stung by rising oil prices.

While it's true that some of the company's product lines have slowed as a result of the slump in construction activity, overall the business is still growing smartly.

In the first quarter of this year, earnings jumped 35% on a 14% increase in sales. I expect earnings to grow another 27% over the next 12 months.

This share could be a safehaven in the crises that are in the stockmarket.


The Doc