Looking through the list of top % gainers on the AMEX this afternoon, I saw that Chase (CCF) had just made the list, closing at $19.00, up $.96 or 5.32% on the day.  I do not own any shares or options on this stock but my Stock Club does own some shares.

This entry is called a "revisit" because I have reviewed Chase previously.  On February 6, 2007, I examined this stock and found it worth of inclusion on this blog.  At that time the stock was trading at a split-adjusted price of $33.49/2 = $16.75.  With the $19 close, this represents a gain of $2.25 or 13.4% since posting.

I still like this stock and thus,

CHASE CORPORATION (CCF) IS RATED A BUY

I would like to briefly review some of the facts surrounding this company that have led me to this assessment and re-emphasize the philosophy behind my thinking.

According to the Yahoo "Profile" on Chase (CCF), the company

"...engages in the manufacture of specialty tapes, laminates, sealants, and coatings, as well as in the provision of electronic manufacturing services worldwide. It operates through two segments, Specialized Manufacturing and Electronic Manufacturing Services."

Chase, on April 8, 2008, announced 2nd quarter 2008 results.  For the quarter ended February 29, 2008, revenues came in at $28.2 million a 3% increase from the $27.5 million reported in the year earlier same period.  Net income worked out to $1.87 million, up 36% from the $1.37 million reported last year or $.22/share, up from $.16/share the prior year. 

While I might prefer to see a stronger revenue increase, for me I am satisfied that revenue did grow and that earnings were able to increase even more.  One of the cornerstones of my investment 'picks' and my general philosophy is that the consistent results of a growing company producing ever-improved financial results will result in a stock that also consistently appreciates in price over time. 

But one quarter of good results is not enough to sell me on a stock.  It is the consistent reporting of results--which for me I can identify utilizing Morningstar.com.  Indeed, if we check the Morningstar.com "5-Yr Restated" financials, we can see several things that I like about the company.  First of all the steady increase in revenue (although the company is certainly quite small), from $74.6 million in 2003 to $127.5 million in 2007 and $132 million in the trailing twelve months (TTM).

Earnings, after a dip from $.63/share in 2003 to $.58/share in 2004, have steadily increased to $1.22 million in 2007 and $1.37/share in the TTM.

Another interesting observation is that this small company even pays a dividend---and not only that has been fairly regularly increasing that pay-out from $.14/share in 2003 to $.20/share in 2007 and $.25/share in the TTM.  I do not require dividends to 'endorse' a stock--but it certainly is an added 'plus' for me!  To also have a company that regularly increases its dividend is a corporate action that suggests a certain confidence in the company's prospects and financial strength.