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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
Market Updater
23 Aug 14 04:31:12
$LYB: LyondellBasell Industries NV (LYB) Plans Quarterly Dividend of $0.70 http://t.co/eNSQRwpIT3 http://t.co/0NAWGlzIh6
23 Aug 14 04:17:20
$LYB:US 23Aug Positive News #Sentiment http://t.co/2Gu7JbPme0 #Russell200
23 Aug 14 04:16:12
$LYB:US 23Aug Positive News #Sentiment http://t.co/G7A100dVRN #SP500
Alpha Maven Alerts
23 Aug 14 01:19:14
$LYB, Positive, Yesterday, SD +2.30, #NYSE #OilGas
Tracey Ryniec
22 Aug 14 15:22:13
Bullish? "@361Capital: All Time New Highs Today: $BRK.B $DIS $PEP $HD $TD $UNP $CVS $PUK $LYB $CNI $LMT $LOW http://t.co/40sN1aK9GE""
Market Call
22 Aug 14 10:56:56
@RandyBrook_ Sorry, Don doesn't know $LYB & we ran out of time today. Thanks for watching! @BNN!
Business Updates
22 Aug 14 06:31:12
$LYB: What Falling Estimates & Price Mean for Axiall Corporation (AXLL) http://t.co/4nuTk7aJp5 http://t.co/GM7bWP1iGv
Media Sentiment
22 Aug 14 05:55:18
$LYB received a new alert. Find out why at http://t.co/5udYd0Ofs6 #stocks #daytrading #trading #mkt #NYSE #NASDAQ #markets 102
22 Aug 14 05:55:06
LyondellBasell NV : Chemicals Stocks on the Move -- Dow Chemical, Huntsman, FMC Corp., Eastman Chemical, an... http://t.co/S0lxE4SAMh $LYB
alex campbello
22 Aug 14 05:53:24
Commented on: "Best S&P 500 Dividend Stocks According To Shareholder Yield: Lyonde... http://t.co/eJJ8k5MAoG $LYB
Stock Signaling
21 Aug 14 21:31:06
Yesterday's All-Time Highs: $UHS $CVS $WRB $LYB $LOW $EQR $FLT $STE $ADP $PSA $WEX $MUSA $SHW $EXAS $AVB http://t.co/Vtx6dLy0Nw #stockpicks
21 Aug 14 16:01:12
RT @361Capital: All Time New Highs Today: $BRK.B $DIS $PEP $HD $TD $UNP $CVS $PUK $LYB $CNI $LMT $LOW http://t.co/USqWRlc9L7
ETF Trends
21 Aug 14 15:10:36
#Materials ETFs Join All-Time High Club http://t.co/tjmY69DHtr #ETF #sectors #stocks $XLB $DOW $AA $LYB $PYZ
Tom Lydon
21 Aug 14 15:05:25
#Materials ETFs Join All-Time High Club http://t.co/HcXmF1dYij #ETF #sectors #stocks $XLB $DOW $AA $LYB $PYZ
21 Aug 14 14:47:53
My 5 Favorite #LargeCaps $ZTS $WY $SHW $PFG $LYB http://t.co/KjBvu3mFIc
Brattle St. Capital
21 Aug 14 14:10:58
RT @361Capital: All Time New Highs Today: $BRK.B $DIS $PEP $HD $TD $UNP $CVS $PUK $LYB $CNI $LMT $LOW http://t.co/USqWRlc9L7
361 Capital
21 Aug 14 14:09:53
All Time New Highs Today: $BRK.B $DIS $PEP $HD $TD $UNP $CVS $PUK $LYB $CNI $LMT $LOW http://t.co/USqWRlc9L7
Business Headlines
21 Aug 14 07:31:16
$LYB: [video] Summer lovin' stock picks http://t.co/Nlrt27h4wj http://t.co/dKGZyWhwJ9
MoneyShow Trading
21 Aug 14 06:44:39
$XLB $SPY $LYB $DVN $TXTR Top Stocks From One of the Biggest Bulls http://t.co/CddYKIlZOq
21 Aug 14 06:44:21
$XLB $SPY $LYB $DVN $TXTR Top Stocks From One of the Biggest Bulls http://t.co/3brWk7s43K
Traders Expo
21 Aug 14 06:44:04
$XLB $SPY $LYB $DVN $TXTR Top Stocks From One of the Biggest Bulls http://t.co/CqHpHY3hOq
21 Aug 14 06:43:45
$XLB $SPY $LYB $DVN $TXTR Top Stocks From One of the Biggest Bulls http://t.co/ARGLAS63dH
Livermore's Lounge
20 Aug 14 14:32:16
“@361Capital: All Time New Highs Today: $AAPL $GILD $HD $UNP $CVS $CELG $LYB $LMT $LOW $GD $CP $ECL http://t.co/FDfUVTkxqC” RT Solid
Bulls vs Bears
20 Aug 14 14:31:13
$LYB: For wandering tankers with $300mln of Kurdish crude, end-game still in doubt http://t.co/C4mfYbpwq2 http://t.co/OkKMth0naf
361 Capital
20 Aug 14 14:25:05
All Time New Highs Today: $AAPL $GILD $HD $UNP $CVS $CELG $LYB $LMT $LOW $GD $CP $ECL http://t.co/Utjfy8WzW2
Craig Garbers
20 Aug 14 09:20:07
RT @SeekingAlpha: Share Buybacks: The Good And The Bad http://t.co/jpLqu2nHeM $AAPL #APPLE $AXP $AZO $BBBY $DNB $DTV $FOSL $GIS $HD $HLF $L…
Seeking Alpha
20 Aug 14 09:16:11
Share Buybacks: The Good And The Bad http://t.co/jpLqu2nHeM $AAPL #APPLE $AXP $AZO $BBBY $DNB $DTV $FOSL $GIS $HD $HLF $LYB $ORCL $ORLY
Randy Brook
20 Aug 14 07:33:33
@jimcramer #CramerQ, bought $LYB at $77 in February , now it is $112, thought $100 by year end, long term holder but is this too far to fast
20 Aug 14 01:28:01
RT @WallStJesus: RT @361Capital: All Time New Highs Today: $BRK.B $GILD $HD $RY $UNP $CVS $CELG $LYB $LMT $JD $AMT $ECL http://t.co/X4MKBZr…
Ian Nelson
19 Aug 14 16:53:17
RT @WallStJesus: RT @361Capital: All Time New Highs Today: $BRK.B $GILD $HD $RY $UNP $CVS $CELG $LYB $LMT $JD $AMT $ECL http://t.co/X4MKBZr…
Alma Fernandez
19 Aug 14 16:18:05
RT @361Capital: All Time New Highs Today: $BRK.B $GILD $HD $RY $UNP $CVS $CELG $LYB $LMT $JD $AMT $ECL http://t.co/ytSJ35NveL
19 Aug 14 15:32:04
RT @361Capital: All Time New Highs Today: $BRK.B $GILD $HD $RY $UNP $CVS $CELG $LYB $LMT $JD $AMT $ECL http://t.co/X4MKBZrHHD
361 Capital
19 Aug 14 14:11:07
All Time New Highs Today: $BRK.B $GILD $HD $RY $UNP $CVS $CELG $LYB $LMT $JD $AMT $ECL http://t.co/ytSJ35NveL
Financial News
19 Aug 14 12:31:13
$LYB: LyondellBasell Industries NV (LYB) Plans Quarterly Dividend of $0.70 http://t.co/1NXhBD2UNQ http://t.co/svcmr9Ciiy
19 Aug 14 12:17:34
LyondellBasell Industries NV: The stock is testing its highs. $LYB http://t.co/dqK9dNcEAh http://t.co/1tkr1AId7R
19 Aug 14 11:20:45
$LYB - LyondellBasell Industries NV (NYSE:LYB) Banking on Oil and Natural Gas Boom for Growth - http://t.co/zyUh2F0VMn
19 Aug 14 09:44:53
Moving nicely higher since posting this bullish pattern in $LYB last week http://t.co/P8jApbK5qV
Victor Riesco
19 Aug 14 09:39:33
Some new breakouts today in my watchlist: $ZUMZ $BBD $NTCT $RFMD $SWKS $QLIK $AAPL $CATM $LYB --> All of them nice setups.
19 Aug 14 06:25:04
$LYB - Statement of Changes in Beneficial Ownership (4) http://t.co/aA2EhkH8z1
Stock News Guru
19 Aug 14 04:31:14
$LYB: LyondellBasell Industries Touches 52-Week High at $110.67 http://t.co/nSsVJp902H http://t.co/vO02Y7Iv64
19 Aug 14 04:16:51
$LYB:US 19Aug Positive News #Sentiment http://t.co/tqd20gO9Oo #Russell200
19 Aug 14 04:15:55
$LYB:US 19Aug Positive News #Sentiment http://t.co/HPZwntPXtb #SP500
James Stevens
18 Aug 14 15:06:43
RT @361Capital: All Time New Highs Today: $XLV $DIS $GILD $HD $AMGN $UNP $CELG $LYB $LMT $HDB $AMT $REGN http://t.co/b92YDiAZkB
361 Capital
18 Aug 14 14:05:07
All Time New Highs Today: $XLV $DIS $GILD $HD $AMGN $UNP $CELG $LYB $LMT $HDB $AMT $REGN http://t.co/b92YDiAZkB
Точка Входа.Трейдинг
18 Aug 14 12:10:20
$LYB long 112.01
18 Aug 14 10:55:42
@SSRIndustrials Chemicals Monthly – Commodity Chemicals Roll On $DOW $LYB $DD http://t.co/GjRJAZ9yTH
18 Aug 14 10:26:52
LyondellBasell Industries NV: The stock is testing its highs. $LYB http://t.co/dqK9dNcEAh http://t.co/lJQNMXrNDG
Stock News Updates
18 Aug 14 08:31:12
$LYB: Insider Selling: LyondellBasell Industries NV EVP Sells 13004 Shares of Stock ... http://t.co/lNHNwJ2rLf http://t.co/bx9VcLLPMC
BNK Invest
18 Aug 14 07:55:15
Notable ETF Inflow Detected - $XLB $DOW $DD $LYB #etfs http://t.co/5YkHz34K4q
18 Aug 14 07:55:11
Notable ETF Inflow Detected - $XLB $DOW $DD $LYB #etfs: Symbols mentioned in this story: XLB, DOW, DD, LYB... http://t.co/RawGIvWpzC
By  +Follow September 20, 2013 5:44AM



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