Tuesday, April 28, 2009

ECL Earnings in line w/ street

"Ecolab Inc (ECL.N), a provider of cleaning supplies and services for restaurants, hotels and other businesses, reported a 44 percent decline in quarterly profit on Tuesday, matching expectations, and affirmed its full-year profit forecast."
-see full article @: http://www.reuters.com/article/marketsNews/idAFN2754590820090428?rpc=44

Aside from the earnings report, this Swine Flu outbreak may be a positive catalyst for a provider of sanitation supplies and equipment. History has shown that food scares and public health emergencies such as the taco bell e.coli scare a few years ago or the SARS outbreak, have increased demand for the supplies and services that ECL provides. It's up 3% already today, while the market is about flat. I believe the movement is tied to a combination of the earnings report and swine flu concerns. I still like the stock and believe that $40 is a key resistance level that, if passed, may improve investor confidence in the stock as it has hovered in the mid 30's since we bought it at $35.


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