Home » conflict sin stocks » Is “Nearly Invisible” Sin Stock Olin Corporation A Buy? #OLN

Some sin stocks are obviously sin stocks. There’s no mistaking the sin that Budweiser (BUD) is all about. There’s no mistaking the sin that MGM Resorts (MGM) is all about. There’s no mistaking the sin that Tweed Marijuana (TWD) is all about.

These sin stocks are highly visible.

But then there are invisible sin stocks that seem to fly under the radar. It’s not just that they have an easy-to-overlook name; it also has to do with their line-up of products.

And that’s what Olin Corporation (OLN) is. It’s an invisible sin stock with a name that doesn’t give it away… and a product line-up that is easy to completely overlook the sin.

Olin Corporation makes a variety of products — most of which you’d never give a second thought to and probably don’t even know what they do. Products like: chlor alkali and vinyls (huh?), chlorinated organics (huh?), and epoxy (that’s glue, right?)…

… and bullets.

Yes, along with chemicals that confuse those of us who slept through science class in school, this company makes bullets for the Winchester brand, which means they supply sportshooters, hunters, and law enforcement with bullets.

At first glace it seems like a stretch: chemicals and bullets?!?

But there is a connection (and no, that connection is not some twisted post-apocalyptic crime-fighter with a bunch of guns).

The connection, as we see it here at Sin Stocks Report, is: consumables, especially those that are moderately dangerous. Their products like chlor alkali includes caustic soda; epoxy is not that dangerous; chlorinated organics could be dangerous if not used properly… and bullets. All of these can be consumed and need to be replenished. They’re one use only products.

… which actually gives Olin a fairly strong business model, especially when combined with being the market leader various categories.

Well, their stock price has been going up and up, trading as high as $38.84 in the past 52 weeks. However, just in the past 4-5 days (depending on when you read this), their stock price has fallen… all the way down to $30.55 as of the time of this writing, which essentially erases out the steady gains made since September 2017. (See the Google Finance chart to see this)

Most of that correlates with the overall market correction we’ve seen these past few days, so that’s nothing to worry about.

But this is the important part: The underlying factors that make this a good company don’t seem to have changed. In fact, in classic conflict sin stock fashion, this company does well as greater amounts of crime occur… not because of a higher use of bullets but because more and more people respond to the fear by buying guns, which need ammunition. And look, crime and fear aren’t going away soon!

So the market may have corrected and Olin with it but we’re keeping our eye on this invisible sin stock. We think it’s still a buy.

It might be time to stock up on bullets… and OLN stock.

DISCLAIMER

Nothing on this site is a recommendation because, hey, I can't read your mind and I don't know what you have in your portfolio, and I'm not a licensed financial advisor. So never EVER trade without doing your due diligence. If you want more information about this fascinating topic, please check out the Sin Stocks Disclaimer page which basically says the same thing but more emphatically.