The smell we’re talking about is not the market — although frankly, we are finally seeing suspicions over the state of the global economy are finally catching up with revenue and earnings expectations.

No, the smell we’re talking about comes in the form of International Flavors & Fragrances (IFF), which we are adding to the Tematica Select Investment List today. We like the company’s flavors and fragrances business, which touches so many facets of daily life in both developed economies and, increasingly, in emerging markets. We also like management’s rising dividend policy, with an annualized $2.24 per share this year, up from $1.00 per share in 2010.
This week’s issue of Tematica Investing includes:

• We are heading into the thick of earnings season this week and as expected it’s looking rather spotty with some upside surprises and a growing number of disappointments. We’ll continue to be cautious, looking for opportunities to either scale into existing positions or add new ones.
• We are promoting shares of International Flavors & Fragrances (IFF) to the Tematica Investing Select List with a $145 price target. We will hold off setting a protective stop loss as we move deeper into September quarter earnings, preferring to improve our cost basis should the opportunity present itself.
• To make room for IFF shares, we are closing out our position in the Consumer Discretionary SPDR ETF (XLY).
• Updates – We’ve got a ton of them this week, including Amazon (AMZN), Costco Wholesale (COST), Under Armour (UA), Universal Display (OLED) and several others.

You can click below to download the full report.