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What: Shares of specialty chemical company Rockwood Holdings
So what: Earnings were in line with expectations at $1.06 per share, but revenue is what has investors concerned today. Revenue was only up 17.4% to $940.9 million, and analysts were expecting $965.2 million in revenue, so of course the market freaked out today.
Now what: I’m not overly concerned about the revenue miss because of the strong revenue growth and continually improving margins. Shares are trading below 10 times forward earnings estimates, and with a double-digit growth rate I think shares are looking very attractive. Today’s drop provides long-term investors a nice buying opportunity for shares in this growing company.
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Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.
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