This column is for investors willing to take more risk and potentially receive more reward.  The stocks mentioned in this column are not recommended to buy or sell.  They're brought to your attention so you can investigate them further to determine if they fit your risk profile.  Most of the stocks will have less than $1 billion of market capitalization, have more volatility than other stocks, and oftentimes no earnings.  And some will have tremendous stories.

June 17, 2011 - Solutia Inc. (SOA-NYSE) engages in the manufacture and marketing of performance materials and specialty chemicals used in a range of consumer and industrial applications. It operates in three segments: Advanced Interlayers, Performance Films, and Technical Specialties.

The Performance Films segment offers solar control, decorative, safety, and security window films for aftermarket automotive and architectural applications under the LLUMAR, V-KOOL, HÜPER OPTIK, VISTA, GILA, and FORMULA ONE HIGH PERFORMANCE AUTOMOTIVE TINT brand names; and precision coated films and other enhanced polymer films for electronics and energy industrial customers under the FLEXVUE brand.

The Technical Specialties segment provides chemicals for the rubber, solar energy, process manufacturing, and aviation industries. This segment offers vulcanizing agents, principally insoluble sulfur under the CRYSTEX brand; antidegradants under the SANTOFLEX brand; heat transfer fluids under the THERMINOL brand; and aviation hydraulic fluids under the SKYDROL brand name. The company sells through a direct sales force, as well as distributors and franchisees in the United States, Europe, Asia, Latin America, and Canada. Solutia Inc. was founded in 1901 and is headquartered in St. Louis, Missouri.

This company went through bankruptcy in 2003. It was part of Monsanto until 1997, then spun off. It finished reorganization and went public again in late 2007. The stock reached $20.50 by mid 2008, and by March of 2009, traded at $1.00 a share. It's only gone up since.

And why not? Earnings went from a negative 19 cents in 2008 to a positive 53 cents in 2009. Last year finished with $1.57. Six analysts think this year will show $2.21 and 2012 is forecast to be $2.60. Those are impressive earnings' increases for a $22 stock. The June quarter is estimated at 56 cents a share vs 44 cents in last year's second period. The third quarter is even better: 61 cents compared to 42 cents in 2010. Earnings in the first quarter jumped by 43% to 50 cents a share.

SOA's film, Flexvue, is part of many mobile electronics including computer tablets and e-readers. The company recently bought more manufacturing capacity for Flexvue in Asia which accounts for almost half of Flexvue's sales.

Solar energy is also shining bright. SOA makes several components for this market which is seeing higher demand as an energy source. Recently the company announced a new contract to supply its synthetic heat transfer fluid (Therminol VP-1) to the world's largest solar generation facility, a $2 billion project under way in Gila Bend, Arizona which should be competed by 2013.

One waving red flag is SOA's high debt level. It's 66% of the balance sheet at $1.42 billion. However, the company is focused on paying that down. In the last quarter, with $135 million in adjusted EBITDA (earnings before interest, taxes, depreciation and amortization), management allocated $77 million to repay some of its borrowings. Expect more payments in coming quarters.

Essential numbers: Price to sales ratio is 1.33. Price to book is 3.11. Book value is $7.05. Operating margin for the last 12 months was 18.25% and Profit margin was 9.99%. Return on equity was a remarkable 30.66%. Return on assets was 6.57%. Revenues were $2.01 billion. There's $173 million in cash or $1.42 a share. Total debt to equity is 163%. Current ratio is 1.97. Beta is 2.09. In the last 52 weeks, the stock is up 44.78%. There are 122.28 million shares Outstanding with a Float of 120.2 million. Insiders own 5.94% of the stock and Institutions have 92.10% of the Float. There is no dividend.

Aggressive investors have a natural affinity for a stock like SOA: it's been through terrible times, regrouped, then came roaring back. Right now, all systems are go for the company as demand for its products is solid across the catalog. As long as the major markets stay strong globally, this stock looks like it has new highs in its future.