The chemicals industry is a tough one in the best of times, with many companies like
Dow (NYSE:
DOW) largely dependent on global economic cycles and others like
DuPont (NYSE:
DD) having to spend billions on
mergers and acquisitions or
research and development to stay out of cutthroat
commodity competition. While
Aceto (Nasdaq:
ACET)
addresses what looks like long-term growth markets (particularly
healthcare), investors need to be wary of a relatively poor history of
cash flow generation as well as strong competition from China and India.
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