LSB Industries' Shares Dropped: What You Need to Know

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Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of chemicals and climate-control equipment maker LSB Industries (NYS: LXU) cooled off overnight, dropping as much as 16.3% on massive trading volumes.

So what: The company just released third-quarter results with 59% higher earnings year-over-year on 28% stronger sales. But analysts had expected even bigger jumps, so this was still a disappointment.

Now what: LSB remains a fantastic performer in a dull-as-doornails market, much like longtime newsletter recommendations Otter Tail (NAS: OTTR) and California Water Service (NYS: CWT) . I know, right? The names alone are putting you to sleep already.

But let's get back to the "fantastic performer" part. LSB passes some insanely restrictive screens, to the point where fellow Fool Rex Moore invested real money in the stock. And at today's depressed prices, LSB shares are back in territory not seen since last week. The stock is up more than 40% over the last year. Not bad for a boring pail of dishwater, I'd say.

Interested in more info about LSB Industries? Click here to add it to My Watchlist.

At the time this article was published Fool contributor Anders Bylund holds no position in any of the companies mentioned. The Motley Fool owns shares of LSB Industries and California Water Service Group. Motley Fool newsletter services have recommended buying shares of Otter Tail and California Water Service Group. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinion, but we all believe that considering a diverse range of insights makes us better investors. Check out Anders' holdings and bio, or follow him on Twitter and Google+. We have a disclosure policy.

Copyright © 1995 - 2011 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

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