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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. To read our full disclosure, please go to: http://www.equities.com/disclaimer

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Results for LYB
28 Jul 15 18:46:06
SPXL Direxion Daily S&P 500 Bull 3X Shares Ask Size http://t.co/5tTbN8e0tK $SPXL $SWC $LYB $MRK #SPXL #share #pennystocks
28 Jul 15 18:42:10
NAT Nordic American Tanker Shipping Ltd. Stock Message Board http://t.co/KVCBaXJ5SR $NAT $LYB $TNA $KBE #NAT #stockmarket #finance
Lucky Jimmy
28 Jul 15 18:42:09
MYEC MyECheck, Inc. E.P.S. http://t.co/Qh9lgZwgpm $MYEC $IPGP $LYB $PGNX #MYEC #stocks #investing
28 Jul 15 18:41:10
MSTR MicroStrategy Inc. Yield http://t.co/ADWgqoQXTp $MSTR $PGNX $EA $LYB #MSTR #stockmarket #stockmarket
28 Jul 15 18:41:07
LYB LyondellBasell Industries NV Day Low http://t.co/LKyA3koLKJ $LYB $GILD $CAT $BRK/B #LYB #nasdaq #stocks
Stock Forums
28 Jul 15 18:40:40
LYB LyondellBasell Industries NV Yield http://t.co/YdrQsnIMUJ $LYB $NKE $XLB $TASR #LYB #finance #stock
Rosner Stocks
28 Jul 15 18:40:36
LYB LyondellBasell Industries NV Change http://t.co/TiFpiSg2ng $LYB $XLU $GOOG $GDX #LYB #share #invest
IH News Desk
28 Jul 15 18:39:38
ITEK Inotek Pharmaceuticals Corp. Open http://t.co/EWrB1vjoMn $ITEK $IWM $LYB $WFM #ITEK #stock #invest
28 Jul 15 18:39:17
IBM International Business Machines Stock Message Board http://t.co/0xhp3RN9lV $IBM $VXX $LYB $AVXL #IBM #stockmarket #tradeideas
28 Jul 15 18:33:15
BIB ProShares Ultra NASDAQ Biotechnology Current Price http://t.co/pUB649qkmj $BIB $HD $LYB $SIRGQ #BIB #stocks #stocks
28 Jul 15 18:31:35
AEM Agnico Eagle Mines Ltd. Yield http://t.co/spDWRD5Cd9 $AEM $GE $LYB $DD #AEM #tradeideas #stockmarket
FinSentS SP500
28 Jul 15 15:09:45
$LYB:US LyondellBasell Q2 Profit Rises #LYONDELLBASELL INDUSTRIES NV http://t.co/9sqzuh6Oyw #SP500
28 Jul 15 15:01:02
$LYB: Wall Street analysts bullish on LYB's earnings growth: http://t.co/uNTF1ISewB http://t.co/ZZeWyD7Xfw
28 Jul 15 14:58:22
Stochastic Buy http://t.co/lQnNhoGUve $AMKR $OAS $ECA $EOG $LYB $GPOR $SCCO $PPG $SMH $APC $TD $MTW $TSU $MRD $DVN $HYG $CVX $TIVO
28 Jul 15 14:16:08
$LYB: Lyondellbasell Industries (LYB) Earnings Report: Q2 2015 ...: http://t.co/Xdhc11gXvt
Trading Quotient
28 Jul 15 12:30:43
Earning Report – $LYB http://t.co/KJMJKvtHgI
BNK Invest
28 Jul 15 12:09:10
Noteworthy Tuesday Option Activity: $LYB $IR $JWN #stockoptions http://t.co/aIdXTqNHfT
28 Jul 15 11:57:08
$LYB 2Q15 Q&A - Duffy, Barclays: Timeline for CFO search? Bob, CEO: High priority and some news is expected over the coming weeks or months.
28 Jul 15 11:44:38
LyondellBasell Industries NV (LYB) Has earnings of 8.69 Per Share. http://t.co/GOvC21Rnli $LYB #investor #stocks #investing
Alexander Morris
28 Jul 15 11:25:05
$LYB: 1mRunaway+:3 [+3%,3.9%offLo], News[Earn], tf:0111111; TLM:1.7; ILM:1.6, Gap+[+2.8%], DyVol:4.71M:1x:1x, DyRng:5%:2.4x:1.8x
Value Don't Lie
28 Jul 15 11:15:35
@Valuedontlie $AZO $LYB $OUTR $FBRC have been very consistent in buying back stock
28 Jul 15 11:11:16
$LYB 2Q15 Call: On July 14, 2015, fire broke out at Berre, France site. There were no injuries. Fire was limited to two remote storage tanks
Mitchell Warren
28 Jul 15 10:58:48
7/28/2015 Unusual Options Activity http://t.co/kLJLZfuqtv $APD $IR $LYB $NAVI $XOP
Dividend Master
28 Jul 15 10:44:56
@BZ1836 bot some $LYB this morning .
28 Jul 15 10:22:28
$LYB 2Q15 PR: Diluted EPS was $2.82 vs. $2.23 in 2Q14. Increased interim quarterly dividend by 11% to $0.78 per share http://t.co/NGTFbfGORA
28 Jul 15 10:22:11
$LYB 2Q15 PR: Sales and other operating revenues $9,145MM vs. $12,117MM in 2Q14. Net income was $1,329MM. http://t.co/rJ0viueWbJ
Instrumental Data
28 Jul 15 10:03:03
LyondellBasell Industries N.V. $LYB 10-Q now available
Sec Filings
28 Jul 15 10:00:04
$LYB: LyondellBasell Industries N.V. filed a form 10-Q. http://t.co/kodRZKlIIg
Trader Daily
28 Jul 15 09:18:07
LyondellBasell $LYB Stock Gaining After Earnings Release http://t.co/h4pi9L2EEk
Kurumi Fukushima
28 Jul 15 09:16:34
LyondellBasell $LYB Stock Gaining After Earnings Release http://t.co/OAqPYBTySg
TheStreet SpeedDesk
28 Jul 15 09:16:33
LyondellBasell $LYB Stock Gaining After Earnings Release http://t.co/YJnqlIb0V5
Livevol Community
28 Jul 15 09:00:03
HIGH CALL VOLU $IR 3754% $WTI 1881% $IPG 1459% $LYB 1217% $AEP 1122% $DGX 631% $NLSN 560% $PCAR 533% http://t.co/gwzPxh5Y4R
Livevol Community
28 Jul 15 08:54:05
Block Trade: 11:38 $LYB Jan15'16 100 C (PHLX) 3.30 12500x Today's Full Report: http://t.co/WAQxGTHdiF
Livevol Community
28 Jul 15 08:54:03
Block Trade: 11:37 $LYB Jan15'16 95 C (PHLX) 5.30 12500x Today's Full Report: http://t.co/WAQxGTHdiF
Livevol Community
28 Jul 15 08:34:04
Block Trade: 11:18 $LYB Jan15'16 100 C (PHLX) 3.30 26121x Today's Full Report: http://t.co/WAQxGTHdiF
Livevol Community
28 Jul 15 08:34:03
Block Trade: 11:18 $LYB Jan15'16 95 C (PHLX) 5.30 26121x Today's Full Report: http://t.co/WAQxGTHdiF
Option Drone
28 Jul 15 08:23:30
$LYB jan 95 / 100 call spread cust paid 2.00 for 26100
28 Jul 15 08:11:57
Active Stocks Trader’s Buzzers: http://t.co/VXjUuFPxma $BBRY $CX $LYB
Ticker Report
28 Jul 15 08:11:20
LyondellBasell Industries NV $LYB Releases Earnings Results, Beats Estimates By $0.09 EPS http://t.co/K6Zx5YUEKx
Dakota Financial
28 Jul 15 08:08:47
LyondellBasell Industries NV $LYB Releases Earnings Results, Beats Estimates By $0.09 EPS http://t.co/2ee4N0eQVd
28 Jul 15 08:00:49
LyondellBasell topped earnings expectations this morning at $2.79 per share. $LYB http://t.co/6tXGg3VeGU
FinSentS SP500
28 Jul 15 07:05:39
$LYB:US LyondellBasell Q2 Profit Rises #LYONDELLBASELL INDUSTRIES NV http://t.co/SXjM60ieP8 #SP500
28 Jul 15 07:04:23
$OCLS cheap health care stock. Price target of $5. 200%+ upside $DAL $LYB $BP $BBY $ADM $SHW investors read http://t.co/rWpJvFmAFr
Michael Maher
28 Jul 15 06:54:30
$lyb has earned $10+/share in the last 12 months. Company is a clear winner of low North American #natgas pricing
Dividend Master
28 Jul 15 06:38:38
$LYB revenues plunged 25% YoY but EPS up 25% and alltime record high as commodity cost inputs plunged
28 Jul 15 06:09:21
@jimcramer was $LYB impressive?
28 Jul 15 06:02:02
28 Jul 15 05:55:30
@murphyrosecliff any thoughts on $LYB?
US Banking News
28 Jul 15 05:47:34
LyondellBasell Industries NV announces earnings. $2.79 EPS. Beats estimates. $9.15b revenue. http://t.co/5NABC2f2fC $LYB #LYB
Consumer News
28 Jul 15 05:43:33
LyondellBasell Industries NV announces earnings. $2.79 EPS. Beats estimates. $9.15b revenue. http://t.co/9nTBnYFdG9 $LYB #LYB
By  +Follow September 20, 2013 5:44AM



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