UPDATE: J.P. Morgan Color On NLC Share Price

J.P. Morgan, which upgraded shares of Nalco Holding Company NLC, is providing some color on the stock. “Nalco's share price has decreased 20% this year versus a 4% rise in the S&P Index,” J.P. Morgan writes. “We believe the primary causes of the decrease are Berkshire Hathaway exiting Nalco and Nalco's lower level of free cash flow generation caused by its growth strategy. “We note that Nalco's relatively low free cash flow yield of 3.7% is no different from the low free cash returns of other quality specialty growth companies such as Praxair or Air Products. Nalco's businesses tend to flourish against the background of high levels of industrial capital expenditures and rising industrial capacity utilization rates.” Nalco Holding Company closed Wednesday at $25.34.