Investopedia: Innospec Might Be A Name To Watch In Specialty Chemicals

It seems a little strange that a specialty chemicals business with $750 million in annual sales and strong returns on capital would be a virtual unknown, but that's the case for Innospec (Nasdaq:IOSP). Although this is a company with input cost exposure and somewhat volatile free cash flow, investors may want to keep an eye on this name as a potential value in the sector.

Addressing Huge Markets for Specialty Chemicals  
Broadly speaking, the markets for fuel additives and chemicals used in personal care products are huge. While there are many competitors, including major chemical companies like DuPont (NYSE:DD), Dow (NYSE:DOW) and BASF, this is nevertheless a market where offering the right proprietary product can drive premium pricing and reliable business.

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