Back to top

Image: Bigstock

Flexible Solutions (FSI) Announces Sale of Florida LLC Units

Read MoreHide Full Article

Flexible Solutions International Inc. (FSI - Free Report) recently announced the sale of units in the Florida LLC, which it invested in over five years ago. The terms of the transaction are $2 million paid at closing and $800,000 per year paid for five years. 

The aggregate amount received from the sale will be $6 million. The original buying price was $3.5 million. The transaction improves FSI's liquidity at a time when its nutrition and food operations demonstrate great potential. It will strengthen its ability to take on big contracts that may come in the coming months.

At the same time, the new partner in the Florida LLC has plans and skills to increase sales in the next years, FSI noted. This will benefit FSI, as the company has a supply arrangement with the LLC. The change in ownership is projected to result in improved sales for the Florida LLC over the next several quarters.

FSI develops and manufactures biodegradable polymers for oil extraction, detergent ingredients, water treatment and crop nutrient availability chemistry. It also produces biodegradable, environment-friendly water and energy conservation technologies.

Shares of FSI have lost 28.1% over the past year compared with a 14.2% decline of its industry.

Zacks Investment Research
Image Source: Zacks Investment Research

Zacks Rank & Key Picks

FSI currently carries a Zacks Rank #3 (Hold).

Better-ranked stocks in the basic materials space include Carpenter Technology Corporation (CRS - Free Report) , Eldorado Gold Corporation (EGO - Free Report) and Agnico Eagle Mines Limited (AEM - Free Report) . 

Carpenter Technology currently carries a Zacks Rank #1 (Strong Buy). CRS beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 15.9%. The company's shares have soared 136.9% in the past year. You can see the complete list of today's Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Eldorado’s current-year earnings is pegged at $1.32 per share, indicating a year-over-year rise of 131.6%. EGO, a Zacks Rank #1 stock, beat the consensus estimate in each of the last four quarters, with the average earnings surprise being 430.3%. The company's shares have rallied roughly 87.6% in the past year.

Agnico Eagle Mines currently carries a Zacks Rank #2 (Buy). AEM beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 15.7%. The company's shares have soared 59.5% in the past year.

 

Published in