5 Best Prison and Law Enforcement Stocks To Buy Now

1. Olin Corporation (NYSE:OLN)

Number of Hedge Fund Holders: 43

Olin Corporation (NYSE:OLN) is a Missouri-based renowned producer of ammunition, chlorine, and sodium hydroxide. The company has the distinction of being the biggest manufacturer of small ammunition in the world.

Duffy Fischer at Goldman Sachs initiated coverage on Olin Corporation (NYSE:OLN) stock with a Buy rating and a target price of $56 on October 13. The size of the global ammunition market stood at $22.35 billion at the end of last year and is expected to compound annually at an average rate of 3.2% between 2022 and 2030. The pandemic saw the entry of eight million new gun holders in 2020 and six million new gun holders in 2021. These trends are likely to provide an attractive growth opportunity to  Olin Corporation (NYSE:OLN), making it one of the best prison stocks to invest in.

Here’s what Voss Capital said about Olin Corporation (NYSE:OLN) in its Q4 2021 investor letter:

“Olin is a multi-segment business, with two segments in the chemicals industry (chlorine, caustic soda, and epoxy production) and a small segment in the ammunition industry. Unlike many chemical companies, we believe Olin has a few idiosyncratic catalysts that can potentially make the stock a core-sized position for us.

First, we believe the company has an underappreciated moat as the low-cost chlorine producer in North America. New CEO Scott Sutton has started to leverage that moat in the form of contract renegotiation and supply constraint (e.g., shutting down unproductive plants) to maximize the value of producing and storing a toxic gas like chlorine. Our current understanding is that incremental demand for both chlorine and caustic soda is set to significantly outstrip incremental supply and that any incremental supply will take years to build out and come online. We think OLN’s other chemical business, Epoxy, is in a similar position with a 5-to-7-year runway of low-cost production leadership, at scale, that will allow for substantial margin expansion. Additionally, a sale of the ammunition business could unlock significant added value – opening the door for investors interested in a chemical pure-play and concerned about ESG. Finally, a full 30% of the company’s chlorine production goes to Dow Chemical in the form of a very low-value, long-term contract that expires in 2025, something the CEO has suggested could be amended well before 2025, in a “cash accretive” way…” (Click here to see the full text)

You can also take a peek at the 10 Best Sporting Goods Stocks To Invest In and the Best Dow Jones Dividend Stocks To Buy.

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