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Last week RP did an IPO representing about 30% of its Rhodia subsidiary. Rhodia is its specialty-chemicals division, which is likely destined for a complete spin-out.

In the longer term RP is positioning itself as more of a pure-play life sciences and pharmaceuticals company (its current industrial classification is "chemicals - diversified"). In addition to doing well in that business, RP may gain a stock multiple more in line with pharmaceuticals (some of which have rather obscene P/E's these days).

So if you put it together, >20% growth rate + multiple expansion makes this a very nice prospect for the next year. Newsletter publisher John Dessauer, who has followed this complex story closely, has a $80 price target within the year.

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