Ackman or No, Air Products Is Solid

Two months ago we recommended Air Products & Chemicals (APD), and the stock has risen more than 8% since then. Since early June, two significant events have taken place. First, the company reported June-quarter earnings that were in line with expectations, with forward guidance tightened around the midpoint of the Street's prior expectations. Second, Pershing Square Management, the vehicle of activist investor Bill Ackman, disclosed a 9.8% stake in the company at the end of July. The latter event is what has caused most of the recent upward movement in the stock.

On Monday, Ackman came under pressure for being on the wrong side (so far) of high-profile investments in Herbalife (HLF) and J.C. Penney (JCP). Since Air Products is his latest foray, to the tune of $2 billion in open-market purchases, some observers are questioning the wisdom of this investment, as well....366 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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