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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.

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Results for LYB
24 Apr 15 19:50:07
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Investors Hangout
24 Apr 15 18:22:12
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24 Apr 15 17:57:09
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24 Apr 15 17:24:43
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24 Apr 15 16:37:26
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24 Apr 15 16:14:25
Capital Market Labs
24 Apr 15 16:04:34
$LYB Cash from Operations is Rising. #CML_LYB #CML_Cash_from_Operations http://t.co/Z6LGXnIsXJ http://t.co/OsJ4CWjbk1
24 Apr 15 16:02:54
S&P500 #Stocks Trend $AMZN $MSFT $JNPR $MAT $CVC $YUM $LYB $GOOG $MYL $GOOGL $BLL $ABBV $MCD $MPC $LUK $GWW @ http://t.co/RPeaHBZz9y
24 Apr 15 16:02:37
S&P500 #Stocks Performance $AMZN $MSFT $JNPR $NEM $SBUX $MAT $TWC $CVC $FCX $TSO $YUM $LYB $NRG $GOOG $MYL more@ http://t.co/RPeaHBZz9y
24 Apr 15 15:32:02
$LYB: LyondellBasell's Profit Growing, But Revenue Down: http://t.co/s3rZV6ikFx
24 Apr 15 14:34:07
RT @theflynews: On The Fly: Top stock stories for Friday $MSFT $GOOG $SBUX $CMCSA $CMCSK $TWC $CHTR $LYB $AMZN $DV: Full Story http://t.co…
Menno van Hoven
24 Apr 15 13:55:48
Ook LyondellBasell wint vandaag (+3,3%) net als $MSFT en #SEB na sterke cijfers en staat voor het eerst in 6 maanden weer boven $100. $LYB
24 Apr 15 13:52:07
$LYB OI for maturity 05/15/2015. 85.00 Highest put. 95.00 Highest call. http://t.co/M2wGtERuJC
24 Apr 15 13:37:02
$LYB: LyondellBasell Earnings Crush Estimates on Low Input Costs: http://t.co/HFo8UJ89Jy
The Fly
24 Apr 15 13:20:27
On The Fly: Top stock stories for Friday $MSFT $GOOG $SBUX $CMCSA $CMCSK $TWC $CHTR $LYB $AMZN $DV: Full Story http://t.co/lbvu4UtaD5
24 Apr 15 13:00:45
S&P500 #Stocks Trend $AMZN $MSFT $JNPR $MAT $FCX $CVC $GOOG $GOOGL $MYL $YUM $BLL $LYB $ABBV $MCD $MPC $AES @ http://t.co/RPeaHBZz9y
24 Apr 15 12:58:39
$QRVO Financials Click Here: http://t.co/Xfp9Gk2Q0k Also See: $JRJC $TOUR $LYB $TRTC ~
Shivaraj Patil
24 Apr 15 12:26:09
Will $LYB be > or < 94.78 on 28-Nov - Play StockIQ:Wall Street iOS- http://t.co/WCUDd1jVdf / Android-http://t.co/ROETCyNwP4
Hot Stock Bot
24 Apr 15 12:06:18
$LYB skyrockets 2.78%, currently trading at $100.28
24 Apr 15 11:46:13
$LYB has so much upward momentum its crazy. bought a couple September 105 calls today.
Alexander Morris
24 Apr 15 11:40:06
$LYB: 1mRunaway+:10 [+3%,1.8%offLo], News[Earn], 8:4Accel+Dy, allTFs+, FirmTrnd++:+50%; TLM:0.7; ILM:0.6, Gap+[+2.2%,fill:60%]
Chasing Stars
24 Apr 15 11:32:45
$LYB Current Price Click Here: http://t.co/ReqD6hSHKF Also See: $EXPE $ASC $PJC $LYB ~
24 Apr 15 11:25:02
$LYB: Bulls Busy as LyondellBasell Industries N.V. (LYB) Tests $100: http://t.co/n52BibfMgN
Hot Stock Bot
24 Apr 15 10:57:36
$LYB is up 2.56%, currently trading at $100.07
Rob Westervelt
24 Apr 15 10:56:27
$LYB has spent $4.5 billion on share repurchase over past 12 months (count down 12%). Capex: $1.46 billion.
US Banking News
24 Apr 15 09:56:04
LyondellBasell Industries NV $LYB Posts Quarterly Earnings Results, Beats Estimates By $0.44 EPS http://t.co/AgKOndhQVO
Instrumental Data
24 Apr 15 09:51:58
LyondellBasell Industries N.V. $LYB 10-Q now available
Breaking News Now
24 Apr 15 09:50:04
$LYB: New SEC Filing for LYB: Form 10-Q (No. 0001193125-15-145917): http://t.co/dGfl5TLyvE
Company SEC Filings
24 Apr 15 09:49:05
NEW SEC Filing for $LYB filed a moment ago: http://t.co/lLhnXMtfKj http://t.co/L3gn3pc6B8
24 Apr 15 09:48:04
$LYB 1Q15 Q&A - Nils, CLSA: Polyethylene inventory levels? Bob, CEO: inventory is at par in the value chain. It’s not very high or very low.
The Legacy News
24 Apr 15 09:42:37
LyondellBasell Industries NV $LYB Posts Quarterly Earnings Results, Beats Estimates By $0.44 EPS http://t.co/2449jTHjgt
24 Apr 15 09:42:22
hind sight being what it is - should have loaded up the truck with $lyb back in December up about 50% sicne
Ticker Report
24 Apr 15 09:41:55
LyondellBasell Industries NV $LYB Posts Quarterly Earnings Results, Beats Estimates By $0.44 EPS http://t.co/sQvOo2PX2E
24 Apr 15 09:38:06
$LYB 1Q15 Q&A - James, SunTrust: Refining segment maintenance effecting throughput? Bob, CEO: it will be minimal.
Hot Stock Bot
24 Apr 15 09:32:45
$LYB rises 2.60%, currently trading at $100.11
24 Apr 15 09:27:30
$LYB 1Q15 Q&A - Aleksey, Nomura: Working capital, expect benefit later in the year? Karyn, CFO: Don’t expect any major swings.
24 Apr 15 09:21:11
$LYB 1Q15 Q&A - Vincent, Morgan Stanley: European operating rates? Bob, CEO: Rates have been strong and will be strong.
24 Apr 15 09:17:38
$LYB 1Q15 Q&A - David, DB: Acquisitions over next 5 to 7 years. Bob, CEO: Focus on share repurchase as means of deploying free cash flow.
24 Apr 15 09:12:20
$LYB 1Q15 Q&A - David, Deutsche Bank: Supply demand balance? Bob, CEO: See still an abundance of ethane.
24 Apr 15 09:12:11
$LYB 1Q15 Q&A - Arun, RBC: Demand trends in April, May and June? Bob, CEO: Q2 stronger quarter in terms of demand.
Hot Stock Bot
24 Apr 15 09:10:34
$LYB is up 2.88%, currently trading at $100.38
24 Apr 15 08:58:24
$LYB 1Q15 Call - Bob, CEO: Eastern Refinery strike continues; decided to delay planned 4Q FCC turnaround to 1Q16.
24 Apr 15 08:57:05
$LYB 1Q15 Call-Karyn,CFO: D&A $287MM. Expect D&A to remain near the adjusted 1Q run rate.
Dividend Master
24 Apr 15 08:56:36
@ak_inv $LYB is the anti - $AMZN ...makes money like crazy and trades at 11PE
24 Apr 15 08:45:53
$LYB Earnings result is already out. Check out historical price reaction after ER. http://t.co/6vrT6UR5oP
Stock Forums
24 Apr 15 08:43:11
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24 Apr 15 08:37:27
$LYB 1Q15 Call - Karyn, CFO: Generated $1.5Bil from operations and issued $1Bil in 40-year bonds at an interest rate of 4.625%.
Media Sentiment
24 Apr 15 08:35:17
$LYB received a new alert. Find out why at http://t.co/nZwqReM0tj #stocks #daytrading #trading #mkt #NYSE #NASDAQ #markets 416
24 Apr 15 08:32:41
$LYB chatter
Stocks On The Move
24 Apr 15 08:30:44
LyondellBasell's earnings beat helped by cheap gas-based raw materials http://t.co/CKyVxZbF0H $LYB
By  +Follow September 20, 2013 5:44AM



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