What: Shares of LSB Industries
So what: Fueled by a 36% surge in sales, LSB posted quarterly earnings of $20.6 million, or $0.90 per share, versus a per-share profit just $0.07 in the year-ago period. LSB continues to benefit from strengthening demand in both of its units (chemical and climate-control sales grew 49% and 19%, respectively), and with the shares surging past 52-week highs today, Mr. Market clearly expects that trend to continue.
Now what: "With the tailwind of the economic recovery, LSB is well positioned financially and operationally to benefit from ongoing investments in the areas with long-term strategic growth potential," said Chairman and CEO Jack Golsen. But although LSB's operating outlook is certainly bright, I'm a bit worried that the shares -- now up more than 100% over the past six months -- already have much of that optimism baked into them. With the company sporting a price-to-cash flow of more than 20, taking some cash off the LSB table might be the prudent thing to do.
Interested in more info on LSB? Add it to your watchlist.