Chemical/diversified industry

Potential investors in the diversified chemical industry will find several attractive companies, but the industry as a whole is still emerging from the US recession. The timely stocks may not have much long-term appreciation potential. Fertilizer companies such as Terra Industries and IMC Fertilizer are well-positioned to take advantage of a regulatory climate that favors ethanol as a fuel, though ethanol's future is uncertain because it is still not economically viable.