Tip of the Week: McLean on the beauty of Croda

TIP OF THE WEEK

Colin McLean, managing director of SVM Asset Management, explains why Croda remains an undervalued stock despite its strong rise this year.

Croda Despite a gain of 80% this year, Croda's share price still undervalues its business. The market seems to be underestimating the radical overhaul this company has had, and the potential for further profits progress. Since 2007, Croda has been transformed by shrinking its balance sheet, and moving capital towards higher margin businesses. An added attraction is the potential for a bid for this trophy asset. Capitalised at £2bn, Croda is a world leader in the production of natural-based speciality chemicals. The group operates two key divisions which contribute approxima...