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Yule Catto's surprising strength

SHARE TIP: Yule Catto (YULC)
August 19, 2010

BULL POINTS

â–  Exposure to emerging markets

â–  Market leading positions

â–  Good play on economic recovery

â–  Potential for re-rating

BEAR POINTS

â–  Relatively unsophisticated products

■ £88m debt pile

IC TIP: Buy at 217p

Yule Catto used to be dismissed as a perennial underperformer. That's understandable given its chequered history, spanning nearly 150 years and almost as many industries. But in its latest guise as a global supplier of polymers - a type of chemical - it's looking more focused yet better diversified than ever before. Judging by its resilience during the recession, its plan is paying off.

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