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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.

Results for LYB
Ambrose Long
19 Apr 14 04:41:53
Get research on $VR $VOYA $LYB $GLD #NASDAQ http://t.co/qd0BeQD0PR
Adria Mosley
19 Apr 14 03:46:51
$NSC Earnings news on $LYB $THC $SPY I suggest http://t.co/BZRFKap4Ba
Stock Watch
19 Apr 14 02:37:46
Small-cap stocks making 52-wk highs $LEA $YHOO $LYB $FEYE View now http://t.co/fVKaBN3cvZ
Hans Hoskins
19 Apr 14 00:16:31
Whats going on with $LYB $CA $GE $CADX I suggest http://t.co/BI4ssHueLy
Crew Daily
18 Apr 14 23:38:35
$PLD Are you Bullish on these #stocks $LYB $JLL $CHTP Goto http://t.co/HPwSfDPB7K
Ward Anders
18 Apr 14 20:02:30
#Stocks you might want to sell $LYB $UHS $ATK $WTW #financial http://t.co/9KPueFhGxX
18 Apr 14 19:32:59
$PLD Is it breakout time on $LYB $JNJ $DO #liquidity http://t.co/scN59gq1yw
Cecily Humphrey
18 Apr 14 19:32:02
$LYB Diodes, Lyondell Near Buy http://t.co/uys2gR5Azo
Sky Grady
18 Apr 14 16:21:12
#Stocks you might want to sell $LYB $WTW $APH $GLD Click http://t.co/j4zQxTTxUB
Small Cap Updates
18 Apr 14 16:06:41
Wow. Great #Stock #Research on $NTRS $SCCO $LYB $TSLA #StockMarket http://t.co/bSOgtoYBcr
Derald Muniz
18 Apr 14 09:22:04
The Fab 5 update - 04/18/2014 http://t.co/zNTmq6Kmm5 $AGU $APH $HON $MPC $NEE $SNP $WDC $CLX $LYB $ALK $XLE $URI $SIAL
Derald Muniz
18 Apr 14 07:58:49
Fab 5 candidates: $CLX $LYB $XLE $ALK $SIAL $URI
Insider Trade Alerts
18 Apr 14 06:48:07
Best research on #stocks such s $LYB $TRMB $WR $AAPL #wallstreet http://t.co/XbuN3iPfVV
Lars Kingston
18 Apr 14 05:47:06
Could be breaktout time on $IR $HPT $LYB $YOD #StockMarket http://t.co/dSPhAHooYz
Esau Braxton
18 Apr 14 05:20:05
$LYB Diodes, Lyondell Near Buy http://t.co/R4luHtWvn7
Finance Wire
18 Apr 14 04:19:31
Top Performing #Stocks today $LYB $UHS $WRB $AMZN #financial http://t.co/rjO2KMoyRz
Insider Trade Alerts
18 Apr 14 02:08:29
Are you hanging on to $LYB $CA $DNKN $ABX #economy http://t.co/g76KHCafoU
Donte Dallas
18 Apr 14 01:36:26
Are you looking for more winners like $LYB $EMN $SMG $AMZN Must see http://t.co/xZH5AWAYvT
Yahaira Landry
18 Apr 14 00:53:45
#Stocks you might want to hold onto $NOW $LYB $ACC $CSIQ #Stock http://t.co/I91HNpdPYG
Milford Schwarz
18 Apr 14 00:25:52
Should you hold or add to $A $DNB $LYB $IR Give it a try http://t.co/4yIpZWj5PG
17 Apr 14 19:31:37
Lyondellbasell Industries N.v $LYB #stock Sales Drivers: The segments with the biggest increases in revenues i... http://t.co/paTldhO1bf
Leighton Cameron
17 Apr 14 19:04:36
$H Earnings news on $LYB $GXP $RT Check out http://t.co/Nq8BnZZavD
Braylin McQuillen
17 Apr 14 19:03:03
Do you think you should hold $ADBE $ADT $LYB $FB #money http://t.co/JjcIIjn9xC
Ward Dissan
17 Apr 14 18:02:48
Top #Stocks today. Find out why. $WMB $PLD $LYB $DO Visit http://t.co/7dc0ReWXGP
Dmitri Magnuson
17 Apr 14 18:01:39
Do you think you should hold $LYB $SPG $FDX $PCLN View now http://t.co/rduExvKHMS
Stock Herald
17 Apr 14 17:40:34
$LYB: Diodes, Lyondell Near Buy Points Despite Correction http://t.co/q9jpQAe4yY
17 Apr 14 17:27:12
$LYB - Diodes, Lyondell Near Buy Points Despite Correction -> http://t.co/AoXEI9G7wI #stock #stocks #stockaction
Master Muppet
17 Apr 14 14:00:28
Jon Boorman, CMT
17 Apr 14 13:52:31
361 Capital
17 Apr 14 13:48:28
Johnny Who
17 Apr 14 12:58:52
$LYB - Breaking out today.!! Will be keeping eyes on this one going into next week. #stock #option #trading #breakout http://t.co/Wst6NpG4up
Derald Muniz
17 Apr 14 12:16:05
“@AgileQuant: @1nvestor Is $LYB going to be a 100 roll candidate?” < possible yes
Angelena Mosesuo
17 Apr 14 11:15:11
Awesome #Stock #Research $WBC $AGCO $LYB $SLW #equity http://t.co/XqOXs0KGZW
17 Apr 14 10:26:05
LyondellBasell Industries NV: The stock is testing its highs. $LYB http://t.co/dqK9dNcEAh http://t.co/nqJPL8lPwJ
Mike Lansing
17 Apr 14 09:50:16
Looking for research on $LYB $UHS $MUR $IBM #financialnews http://t.co/oCE5MYDj15
Zolmax News
17 Apr 14 09:43:48
LyondellBasell Industries PT Raised to $98.00 $LYB http://t.co/jef5PEU502
Sheldon McIntyre
17 Apr 14 09:42:40
Select long ideas. $URI $TPC $TRMB $SSL $LYB $NBR $FNSR $DY
17 Apr 14 06:40:06
$LYB: LyondellBasell to Discuss First-Quarter Results Tuesday, April 29 http://t.co/NeVVifpSAA
Denis Dufort
17 Apr 14 06:35:12
$LYB LyondellBasell to Discuss First-Quarter Results Tuesday, April 29 http://t.co/XeYbAhUVgW
SNN Team
17 Apr 14 06:23:18
$LYB - LyondellBasell to Discuss First-Quarter Results Tuesday, April 29 -> http://t.co/AX8rAIubdj #stock #stocks #stockaction
Fausto Tilley
17 Apr 14 06:18:00
Looking for the next winners like $LYB $SWKS $XEC $DO #wallstreet http://t.co/2JBr5vYopn
17 Apr 14 06:15:05
LyondellBasell NV : to Discuss First-Quarter Results Tuesday, April 29 http://t.co/VyqBQYWBe1 $LYB
Jama Dahl
17 Apr 14 05:41:11
$LYB Europe Gasoline/Naphtha-Bullish http://t.co/M8Wd7j9Euw
Ticker Report
17 Apr 14 05:12:33
LyondellBasell Industries $LYB Plans Quarterly Dividend of $0.97 http://t.co/yBkucrWAoA
Denis Dufort
17 Apr 14 04:39:27
$LYB LyondellBasell Announces Increase to Interim Dividend; New Share Repurchase Program http://t.co/cRDeUr8nbv
Denis Dufort
17 Apr 14 04:33:43
$LYB LyondellBasell increases interim dividend 17% to 70c per share http://t.co/PGiSbBY1m0
Denis Dufort
17 Apr 14 04:33:43
$LYB 8:17 am LyondellBasell increases interim dividend to $0.70 per share, an increase of 17% from co's 1Q14 interim dividend; announces...
Denis Dufort
17 Apr 14 04:28:08
$LYB [$$] LyondellBasell to Buy Back Another 10% of Shares, Raises Dividend http://t.co/6rbVaF0qk3
Denis Dufort
17 Apr 14 04:11:10
$LYB Europe Gasoline/Naphtha-Bullish U.S. data supports gasoline http://t.co/GBrzMlf5ir
By  +Follow September 20, 2013 5:44AM



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