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5 Specialty Chemicals Plays

By  +Follow September 20, 2013 5:44AM
Tickers Mentioned:

The basic materials sector has been a tricky field for investors as of late. Mining companies are in a fluid state due to a number of circumstances, including the turmoil surrounding gold and to a lesser extent other precious metals, while iron ore and copper prices are set to go down due to the recent expectations for a supply glut. And while energy stocks offer a great deal of promise, they too are caught up in a whirlwind of hype resulting from the US and global shale boom.

The specialty chemicals industry, however, offers a number of attractive opportunities.

The following five companies have been selected from that sector based on the kind of healthy fundamentals that are, generally speaking, desirable for basic materias stocks:a price to cash ratio greater than one, indicating that the company not only has cash on hand, but interest to go along with it; a return on equity rate of greater than 20 percent, indicating that the company is investing capital properly and can continue to operate in the long term; a debt/equity ratio of less than 1, indicating that the company's finances are in order; and any kind of dividend yield, since basic materials companies are generally not high-growth, and a dividend of any ammount suggests that the company is doing better than the rest.

Furthermore, all of these stocks have been rated "buy or better" by analysts.

LyondellBasel Industries NV (LYB) –
Market Cap: $42 billion
Price/Cash Ratio: 13.05
Return On Equity: 28.1 percent
Dividend Yield: 2.71 percent
Debt/Equity Ratio: 0.37

The Netherlands-based company is the largest publicly-traded specialty chemicals company on the New York Stock Exchange, and specializes in plastics. The company sells its products in about 100 countries, and counts itself as the world’s largest producer of polypropylene and related compounds that are used in a wide variety of products, including but not limited to thermal undergarments, carpets, loudspeakers, and polymer bank notes. The company has had a good year so far, with shares up over 30 percent to their current price of $73.80.

PPG Industries Inc. (PPG) –
Market Cap: $24 billion
Price/Cash Ratio: 13.53
Return On Equity: 74.70 percent
Dividend Yield: 1.45 percent
Debt/Equity Ratio: 0.67

PPG is based in Pittsburgh, Pennsylvania, and mainly produces coatings and sealants for use in aerospace, automotive, and marine vehicles, as well as architecture and industry. The company also produces materials for use in eye-glasses, as well as fiber glass and packaging, via its facilities which can be found in about 60 countries around the world. PPG is the second largest public specialty chemicals company in the business, and has enjoyed a good 2013, with shares adding more than 25 percent to $168 a piece.

The Sherwin-Williams Company (SHW) –
Market Cap: $18.5 billion
Price/Cash Ratio: 24.91
Return On Equity: 39 percent
Dividend Yield: 1.10 percent
Debt/Equity Ratio: 0.94

The well-known manufacturer of paint and coatings for uses both commercial and industrial, and is the fourth largest public company in the specialty chemicals sector. Most recently, Sherwin-Williams announced the purchase of the US and Canadian segments of the leading Mexican paint company, Consorcio Comex S.A. de C.V. for some $165 million, a deal that had previously been rejected by Mexican regulators. Otherwise, it has been a good year for Sherwin, as the company’s shares have advanced 20 percent to a current price of $181.60 a piece.

International Flavors & Fragrances Inc. (IFF) –
Market Cap: $6.8 billion
Price/Cash Ratio: 18.65
Return On Equity: 21.30 percent
Dividend Yield: 1.86 percent
Debt/Equity Ratio: 0.75

The company develops and manufactures flavoring for food and beverage products, as well as component ingredients for perfume, soap, and other beauty care products. Headquartered in New York City, IFF’s recent second-quarter earnings report showed the company posting substantial year-over-year increases in net sales as well as earnings-per-share. IFF has also had a good year, with shares some 27 percent higher to $83.90 each.

Quaker Chemical Corporation (KWR) –
Market Cap: $905 million
Price/Cash Ratio: 23.52
Return On Equity: 31.10 percent
Dividend Yield: 1.44 percent
Debt/Equity Ratio: 0.08

Quaker produces specialty chemicals primarily for heavy industry and metals manufacturers, including cleaners, lubricants, oils, coatings, and greases. Headquartered in Conshohocken, Pennsylvania, the company has also had a great year, with shares up over 30 percent to their current price of $69.50.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions.

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Results for LYB
Business Updates
31 Aug 14 11:31:14
$LYB: Basic Materials Look Attractive Relative to the S&P500 http://t.co/kD1MKyyDpS http://t.co/T2YvMyn8hC
Wall Street News
31 Aug 14 10:31:12
$LYB: Impasse over Kurdish tanker near Texas to drag on, more tussles likely -source http://t.co/ZX03WgYA6s http://t.co/gpTGZiPolR
Javid Shaik
31 Aug 14 10:24:30
A few #stocks from @AnneTrader watchlist. $AAPL $DPS $HD $HPQ $KLAC $LYB $MAR $SRE http://t.co/Rzh3afcJh4
Javid Shaik
31 Aug 14 10:24:29
A few #stocks from @AnneTrader watchlist. $AAPL $DPS $HD $HPQ $KLAC $LYB $MAR $SRE http://t.co/8UCKaCwgNe
Njonjo Ndehi
31 Aug 14 02:13:34
My favourite stocks ranked by hotness. $GILD $XOM $AAPL $JNJ $GE $DIS $CVX $MPC $CMCSA $HD $LYB $BIIB $UNP $EL $DTV http://t.co/s9pViLJiqE
Alpha Maven Alerts
30 Aug 14 21:05:54
$LYB, Positive, Yesterday, SD +2.38, #NYSE #OilGas
30 Aug 14 16:30:45
RT @361Capital: All Time New Highs Today: $AAPL $BRK.B $HD $AMGN $EPD $LYB $CNI $BMO $PSX $TRP $NOV $TSLA http://t.co/ZuBhgm2Hfd
Chris Kochiya
30 Aug 14 13:16:57
This Week's Watchlist: $AET $BHI $CBI $CDW $CE $CTB $HNH $HPQ $LYB $MCK $MU $MUSA $NOC $PATK $RRD $SPR Bullish.
30 Aug 14 07:12:30
Bullish MACD Crossover 2/2 $HIW $IAG $IRC $IRDW $JOE $LYB $RBY $RIC $SABR $AUQ $SOL $SWKS $TQNT $TSLA $TWC $VNDA $WDC http://t.co/k9LLfWGxXp
Market News
29 Aug 14 17:31:13
$LYB: LyondellBasell Industries Touches 52-Week High at $110.67 http://t.co/oQ6L2GClwD http://t.co/V2x2wuFe36
29 Aug 14 16:37:45
Insider Selling: LyondellBasell Industries NV SVP Sells 7,270 Shares of Stock $LYB http://t.co/sqPMFZVt2G
US Banking News
29 Aug 14 16:22:36
Insider Selling: LyondellBasell Industries NV SVP Sells 7,270 Shares of Stock $LYB http://t.co/p8T4fcHLpe
Brattle St. Capital
29 Aug 14 16:20:05
RT @361Capital: All Time New Highs Today: $AAPL $BRK.B $HD $AMGN $EPD $LYB $CNI $BMO $PSX $TRP $NOV $TSLA http://t.co/ZuBhgm2Hfd
Jon Boorman, CMT
29 Aug 14 16:17:11
Have 4! RT @361Capital: All Time New Highs Today: $AAPL $BRK.B $HD $AMGN $EPD $LYB $CNI $BMO $PSX $TRP $NOV $TSLA http://t.co/3zXGkp8WGJ
361 Capital
29 Aug 14 16:14:36
All Time New Highs Today: $AAPL $BRK.B $HD $AMGN $EPD $LYB $CNI $BMO $PSX $TRP $NOV $TSLA http://t.co/ZuBhgm2Hfd
29 Aug 14 14:30:17
Michael VanDerSnick D, SVP, Manufacturing EAI of LyondellBasell In Sells $571,922 Worth of $LYB - #Form4 ... - http://t.co/uCOE5WECy0
Stock News Guru
29 Aug 14 10:31:13
$LYB: The All-Time New Highs... http://t.co/RaMP0CNcU5 http://t.co/JOwQQWphss
Mark Bahaa
29 Aug 14 10:13:36
Holdin winners/buyin dip-not smart enough(or stupid)to pick bottoms #proctologist $crm $nxpi $avgo $fb $gild $celg $ilmn $dis $lyb $clr $mck
29 Aug 14 04:20:58
Bearish MACD Crossovers 2/2 $HAL $HUN $IAG $INTC $KMI $KMP $LYB $MON $ONVO $P $RSG $STLD $TLM $TSO $VNET $X http://t.co/vtvvIhnptr
Alpha Maven Alerts
28 Aug 14 21:30:05
$LYB, Positive, Yesterday, SD +2.40, #NYSE #OilGas
BNK Invest
28 Aug 14 08:23:03
$IYM $LYB $PX $FCX Large Inflows Detected at ETF #etfs http://t.co/4F4wDO1RfG
28 Aug 14 08:22:58
$IYM $LYB $PX $FCX Large Inflows Detected at ETF #etfs: Symbols mentioned in this story: IYM, LYB, PX, FC... http://t.co/9e09Tup55d
28 Aug 14 07:13:56
RT @361Capital: All Time New Highs Today: $AAPL $GILD $HD $AMGN $TD $EPD $CELG $LYB $CNI $LMT $BLK $BMO http://t.co/QyaZuVaiTY
Edward Gofsky
27 Aug 14 21:24:48
RT @361Capital: All Time New Highs Today: $AAPL $GILD $HD $AMGN $TD $EPD $CELG $LYB $CNI $LMT $BLK $BMO http://t.co/QyaZuVaiTY
Market Updates
27 Aug 14 18:31:14
$LYB: The New Large Cap All Time Highs... http://t.co/SB2V2LLmf4 http://t.co/IgXgFyhOaZ
Wall Street News
27 Aug 14 16:31:12
$LYB: LyondellBasell to Build World Scale PO/TBA Plant on U.S. Gulf Coast http://t.co/sT3UGpaix3 http://t.co/0cPX6RKCi4
27 Aug 14 16:02:49
S&P500 #Stocks Trend $BBY $WFM $NRG $PNW $HUM $AMAT $DPS $GT $UNH $NI $AET $DOW $WLP $TIF $PFE $LYB $MOS $HPQ @ http://t.co/RPeaHBZz9y
361 Capital
27 Aug 14 13:57:05
All Time New Highs Today: $AAPL $GILD $HD $AMGN $TD $EPD $CELG $LYB $CNI $LMT $BLK $BMO http://t.co/QyaZuVaiTY
27 Aug 14 13:00:33
S&P500 #Stocks Trend $BBY $WFM $GT $NRG $UNH $AMAT $HUM $DPS $TIF $DOW $WLP $PFE $AET $PETM $FTR $NE $HPQ $LYB @ http://t.co/RPeaHBZz9y
27 Aug 14 11:43:57
RT @SeekingAlpha: Commodities Today: Stocks Breaking Out And Industry News To Watch http://t.co/0HlEj1lRhD $CLF $LNG $LYB $PBR $PBR.A $VALE
Alysia Sarkisian
27 Aug 14 07:26:23
RT @SeekingAlpha: Commodities Today: Stocks Breaking Out And Industry News To Watch http://t.co/0HlEj1lRhD $CLF $LNG $LYB $PBR $PBR.A $VALE
Seeking Alpha
27 Aug 14 07:20:52
Commodities Today: Stocks Breaking Out And Industry News To Watch http://t.co/0HlEj1lRhD $CLF $LNG $LYB $PBR $PBR.A $VALE
Alpha Maven Alerts
26 Aug 14 22:40:29
$LYB, Positive, Yesterday, SD +2.16, #NYSE #OilGas
Stock News Headlines
26 Aug 14 12:31:16
$LYB: The New Large Cap All Time Highs... http://t.co/LfUgRV0ure http://t.co/4aCtLIGpuk
26 Aug 14 11:07:00
$LYB - LyondellBasell Industries NV (NYSE:LYB) Expands To Improve Performance - http://t.co/WrrvEhPOx7
Bidness Etc
26 Aug 14 10:32:31
Texas court lifts seize order on Kurdish crude oil http://t.co/1rjyOybZeM $LYB $XOM $CVX
26 Aug 14 00:25:39
U.S. court throws out order to seize tanker carrying Kurdish crude http://t.co/sPCi7b3adJ $LYB $USO $OIL $UCO
361 Capital
25 Aug 14 15:00:09
All Time New Highs Today: $AAPL $DIS $PEP $HD $AMGN $EPD $CELG $NKE $PUK $LYB $CNI $LMT http://t.co/yoJL5o2bcs
25 Aug 14 13:36:17
LyondellBasell Industries NV Reaches New 52-Week High at $113.65 $LYB http://t.co/OVoczFm9ni
Stock Updates
25 Aug 14 12:31:14
$LYB: [video] Clear sign from healthy Dow Transports http://t.co/jtL92uppVt http://t.co/xnoP4vFfy0
25 Aug 14 12:26:49
LyondellBasell Industries NV: The stock is testing its highs. $LYB http://t.co/93duFmtPur http://t.co/ARjQ2sCEzQ
Seeking Alpha
25 Aug 14 12:18:44
This Low-Cost Producer Can Return 20% In A Year http://t.co/5p05cP5Eat $LYB
Buda Invest
25 Aug 14 11:06:01
RT @valuewalk: Marc Lasry Buys Ford, Weight Watchers; Sells Dynegy http://t.co/xrtJWwYHO5 $YRCW $JNK $VRS $F $WTW $DYN $LYB $CETV $HMHC $DHT
Stephen P Kendal
25 Aug 14 10:23:07
$LYB #Bullish #Alert 10dMA⇑⇑$110.74⇗ 20dMA⇑⇑$109.38⇗ 50dMA⇑⇑$103.54⇗ 100dMA⇑⇑$99.00⇗ 200dMA⇑$90.30⇗ Price=$113.10★⤴ http://t.co/Lkhd9E8miX
25 Aug 14 09:22:10
$LYB - Statement of Changes in Beneficial Ownership (4) http://t.co/6OeWFeAxUD
25 Aug 14 08:24:49
LyondellBasell to build new Texas plant http://t.co/fsr28zrgyc $LYB
Bulls vs Bears
25 Aug 14 06:31:11
$LYB: LyondellBasell Industries NV (NYSE:LYB) – LyondellBasell to Address Jefferies ... http://t.co/HMy2Eh0SIO http://t.co/yd5vMe89LI
25 Aug 14 05:55:44
RT @Briefingcom: $LYB: LyondellBasell to build PO/TBA plant on U.S. Gulf Coast; to have the plant operational in 2019; expected to... http:…
25 Aug 14 05:53:23
$LYB: LyondellBasell to build PO/TBA plant on U.S. Gulf Coast; to have the plant operational in 2019; expected to... http://t.co/bEdkEM0Gpn
25 Aug 14 03:55:02
LyondellBasell NV : : to Build World Scale PO/TBA Plant on U.S. Gulf Coast http://t.co/OiSFlWLROt $LYB
By  +Follow September 20, 2013 5:44AM



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