Chemicals

  • Why Methanol May Be the Next Big Chemical Story

    By Paula Wendland - February 26, 2013 | Tickers: CE, EMN, MEOH

    Due to changes in the global supply/demand balance and the increasing popularity of this versatile chemical in Asia, industry insiders expect a positive pricing environment for methanol into 2015 and beyond.  Approximately two-thirds of the world’s methanol production is converted to formaldehyde used in building materials, such as plywood, foams and paints.  The remaining third of the supply has a role in home heating and cooking, as a fuel additive, and as a feedstock for plastic production.  While the revival of the homebuilding sector across the US should drive demand for methanol over the remainder of the business cycle, the greatest pricing pressure should come from Chinese buyers hoping to cushion the blow of high crude oil costs and to feed the nation’s many newly-constructed methanol-to-olefins (MTO) plants.

  • Earnings Recap: One Railroad Stands Out

    By William Bias - February 6, 2013 | Tickers: CSX, KSU, NSC, UNP

    The country’s major railroad companies recently came out with their 4th quarter and 2012 full year earnings. The amount of exposure to the weak coal markets helped discern the winners and losers among the rail companies. Low supplies of corn negatively affected agricultural revenue throughout the industry. Housing helped drive industrial product revenues, and oil demand continues to drive chemical freight. Overall, the western railroads won out in 2012:

  • This Dog of the Dow's Ride: Q4 Earnings Preview

    By Masam Abbas - January 21, 2013 | Tickers: DD, DOW

    The chemical industry had a mixed 2012. Where some companies experienced capital appreciation over 50%, others could not even manage a positive return for the year. Therefore, that company ended up becoming a Dog of the Dow for 2013. Yes, you know I am talking about E.I. du Pont de Nemours and Company (NYSE: DD). DuPont fell by 3% in 2012.

    The 3.66% dividend yielder historically holds its more »

  • Big Chemical Companies: Safe Havens or Lumbering Monsters?

    By Chris Hodge - January 8, 2013 | Tickers: APD, DD, SQM, DOW

    I've got a bit of ambivalence about big companies in general. On the one hand, they tend to be fairly stable because size grants a bit of leeway. There's a certain social proof that keeps people working harder to maintain a company that they believe can't possibly fail. But at the same time, it's really easy to get caught up in dogma and expect that things more »

  • Midsize Chemical: Best of Both Worlds or Indecisive Junk?

    By Chris Hodge - January 8, 2013 | Tickers: ASH, CE, EMN, FMC

    Some people really hate anything mid-size. After all, the likelihood of this size range suddenly leaping into multi-bagger territory is fairly small. But at the same time these types of companies don't tend to have a huge and dedicated staff who are totally convinced that the company is an invincible juggernaut. So you're kind of stuck. The company probably won't niche down and wedge itself into a more »

  • Is Jim Cramer Right in Calling This a Terrific Stock?

    By Masam Abbas - January 4, 2013 | Tickers: PPG, RPM, SHW, DOW, VAL

    Company Description

    Sherwin-Williams (NYSE: SHW) is an efficient and innovative producer and seller of paints and coatings used by professionals, do-it-yourselfers, and general industry. The company sells paint, floor coverings, wall coverings, and other related materials through an extensive network of paint stores.

    The company has organized its divisions along regional lines in order to maximize marketing, distribution, and capacity strengths.

    The highest earning segment of the company is its more »

  • A Mid-Cap Chemical stock that Could Close 2012 Strongly

    By Damon Churchwell - November 15, 2012 | Tickers: DD, HUN, LYB, DOW

    One chemical maker I have been keeping an eye on is Huntsman Corp.(NYSE: HUN), a $4.1 billion market cap company that caters to seemingly every industry from paints to aerospace. HUN's recovery persisted in the September quarter, when it earned $0.70 a share pre-restructuring charges, versus the prior-year's $0.51, despite modestly lower sales. Average selling prices are a key factor in the performance of more »

  • This Chemical Company is Good for Income Investors

    By Anh HOANG - October 31, 2012 | Tickers: BASFY.PK, CE, EMN

    Most of the time, George Eastman is well known for being an innovator of roll film and a founder of Eastman Kodak. For a long time, Eastman Kodak had been an extremely successful wealth creator for investors. However, after a digital camera was invented, Kodak lost its moat and nearly sunk into oblivion. In contrast to the significant decline of Kodak, another legacy of George Eastman, Eastman Chemical (NYSE: EMNmore »)

  • Shale Gas Boom a Double-Edged Earnings Sword

    By Tony Daltorio - August 1, 2012 | Tickers: ACI, CVX, XOM, LYB, DOW

    There has been a surge in shale gas production in the United States, driven by techniques such as hydraulic fracturing (fracking), opening up deposits once considered too difficult and costly to exploit. The glut of shale gas in the U. S. has driven down prices to around $3.00 per million BTUs, after reaching a recent low of just below $2.00 per million BTUs. 

    This plunge in natural gas more »

  • Mixed Earnings Review for The Shaw Group

    By Tyler Crowe - July 12, 2012 | Tickers: GEN, SHAW.DL, TOSBF

    It is no secret that 2011 was a mixed bag for the heavy construction industry.  While some saw the worst of times in 2010, several players in the industry had to take a long look in the mirror to determine an effective strategy back to profitability.  Today let us look at The Shaw Group (UNKNOWN: SHAW.DL), who just released its quarterly earnings report on Tuesday.

    Despite the 4.8% increase more »

  • The Marcellus Moves Up the Value Chain by Going Downstream

    By Matthew DiLallo - April 30, 2012 | Tickers: CHK, PPG, REXX, RDS-A, DOW

    Last month it was announced that Royal Dutch Shell (NYSE: RDS-A) was signing an option on a site to potentially build a petrochemical cracker plant in Southwestern PA.  This plant would take the wet gas found in the Marcellus and Utica Shale of western PA and eastern Ohio and turn it into usable chemicals.  The plant will also be the first of its kind in the region to take advantage more »

  • Why These Ag Companies Could Plummet in 2014

    By Roland Hughes - February 6, 2012 | Tickers: MON, SYT, DOW

    There is a perfect storm brewing in the agriculture market which should hit both Dow Chemical (NYSE: DOW) and Monsanto (NYSE: MON) around the end of 2014. This perfect storm may or may not coincide with the bursting of the agricultural bubble. I’ve already told you the ag bubble will burst on or about the time T-Bills hit 6%. If you did not read that post, I’m sorry more »

  • 12 Stocks to Buy and Forget for 2012

    By Kirk Spano - December 27, 2011 | Tickers: APA, AMAT, BRK-B, DISH, EXAS, GE, GMO, KSS, MRK, MON, BTU, SPWR

    If you hold one stock in your portfolio, you carry 100% of the risk of losing all of your money.  As you diversify your holdings from one company to two to three, you are gradually reducing your risk of losing everything. We all know this. What most investors don’t know is that a 12 stock portfolio of domestic companies cuts your company specific risk about 90%.  There are some pretty strong arguments for owning these dozen stocks in your portfolio in 2012.

  • Super Monkey Portfolio Addition: The Mosaic Company

    By Andrew Dillard - December 21, 2011 | Tickers: POT, MOS

    After I published the last article introducing the Super Monkey Portfolio, I received some great feedback that I felt perfectly articulated the purpose of the Super Monkey Portfolio.

    “I suppose one of the merits of the Super Monkey approach is that it causes an investor to look at stocks they otherwise might not have considered. It generates random stocks, not for purchase, but for consideration. So it removes any bias more »

  • Stocks With Dividend Growth From Last Week December II/2011

    By DividendYields - December 18, 2011 | Tickers: AGU, DFS, IR, INGR, ANDE

    Companies that generate excess cash flows are more likely to maintain and increase their dividends. Not at all, if you look at dividends, you also have look at the dividend growth. If companies have a stable business and solid financials, they can consider an adequate increase in dividend payments. Good running dividend growth stocks raise dividends every 4 quarter by around 5-10 percent but better running stocks boost dividends. Last more »

  • GALP This Stock Up

    By Kirk Spano - November 23, 2011 | Tickers: IPI, POT, MOS

    While potash might sound like something you'll find in a bowl on your table this holiday season, it is only there indirectly.  Potash is actually an ingredient that helps grow much of what is in your refrigerator and on your table each night.  Increasingly scarce potash provides one of three essential ingredients for plant growth via water soluble potassium, as well as, profits to a select field of companies.