Analyzing ConocoPhillips (NYSE: COP ) , now the largest of the U.S.-based independent producers, is somewhat akin to peering at HGTV. In the latter, you're bound to encounter a house that's seen better days and is being torn asunder, en route to new eye-popping splendor.
Similarly, the company continues to undergo a makeover, and while the final results may also be eye-popping, they may not be. It's still too early to tell. But it's worth sticking around for the rest of the program to see what eventually materializes.
Discarding downstream
As you know, a year ago Conoco spun off its refining, chemical, and pipeline assets to form Phillips 66 (NYSE: PSX ) . The new company has treated its shareholders well, chalking up gains of more than 80% during the past year, and 17% year to date. Of course, ConocoPhillips isn't the only formerly integrated company to have shed its downstream operations. Nearly a year earlier, Marathon Oil (NYSE: MRO ) formed Marathon Petroleum (NYSE: MPC ) through a similar spinoff. That step resulted in another new company that's up more than 95% during the past year and nearly 30% year to date.
Hot Chemical Companies To Own In Right Now: LyondellBasell Industries NV(LYB)
LyondellBasell Industries N.V. manufacturers and sells chemicals and polymers, refines crude oil, produces gasoline blending components, and develops and licenses technologies for production of polymers. The company?s Olefins and Polyolefins segment offers olefins, including ethylene, propylene, and butadiene; aromatics, such as benzene and toluene; polyolefins, which comprise polypropylene (PP), high-density polyethylene, low-density polyethylene, and linear low-density polyethylene; specialty polyolefins, including catalloy process resins, PP compounds, and polybutene-1 resins; and ethylene derivatives, which comprise ethanol. Its Intermediates and Derivatives segment provides propylene oxide (PO); PO co-products, including styrene monomers and TBA derivative isobutylene; PO derivatives, such as propylene glycol, propylene glycol ethers, and butanediol; acetyls, such as methanol, acetic acid, and vinyl acetate monomers; ethylene derivatives, which comprise ethylene oxide , ethylene glycol, and ethylene glycol ethers; and flavor and fragrance chemicals. The company?s Refining and Oxyfuels segment offers gasoline and components, ultra low sulfur diesel, jet fuel, and lube oils; diesel, feedstock, fuel oil, gasoline, and bitumen; and gasoline blending components, including methyl tertiary butyl ether, ethyl tertiary butyl ether, and alkylate. Its Technology segment develops and licenses polyolefin and other process technologies. This segment also develops, manufactures, and sells polyolefin catalysts, as well as provides technology services, which comprise safety reviews, training and start-up assistance, engineering services for process and product improvements, and manufacturing troubleshooting. LyondellBasell Industries N.V. has operations in the Americas, Europe, Asia, and internationally. The company was founded in 2005 and is based in Rotterdam, Netherlands. LyondellBasell Industries N.V. is a subsidiary of Prochemie GmbH.
Advisors' Opinion:- [By ETF Authority]
LyondellBasell (LYB) manufactures and sells chemicals and polymers, refines crude oil, produces gasoline blending components, and develops and licenses technologies for the production of polymers. It has been given a buy rating by UBS Investment Research. On December 10, 2010, LyondellBasell announced the deve lopment of a new Asian Propylene Oxide project with its joint venture partner. Dividends of $70-90 million per year are expected from this project. UBS' global operating rate forecast, in addition to an assumed start-up date of 2016, supports a margin estimate of $0.30/lb. Also, the plant is assumed to have a capacity of 250k million tons per annum. Shares of the company are currently trading around $39 per share. Cabot Corporation (CBT) operates as a specialty chemicals and performance materials company and is a competitor of LyondellBasell. Cabot has a dividend yield of 2.1%, while LyondellBasell has a dividend yield of 2.9%. LyondellBasell also generated a higher return-on-equity of 24.5%, versus the 13.5% generated by Cabot. Hedge funds prefer LYB over CBT. At the end of the third quarter, there were 44 hedge funds with bullish bets on LyondellBasell, vs. 14 for Cabot. Howards Marks' Oaktree Capital initiated a brand new po sition in LYB during the third quarter.
Hot Chemical Companies To Own In Right Now: Ashland Inc. (ASH)
Ashland Inc. operates as a specialty chemicals company in the United States and internationally. Its Ashland Aqualon Functional Ingredients segment produces cellulose ethers; and specialty additives and functional ingredients. Its products offer functionality, such as thickening and rheology control; water retention; adhesive strength; binding power; film formation; protective colloid, suspending, and emulsifying action; foam control; and pH stability. The company?s Ashland Hercules Water Technologies segment manufactures papermaking chemicals and supplies specialty chemicals. It offers sizing agents, wet/dry strength additives, and crepe and release additives for tissue manufacturing; and deposit control agents, defoamers, biocides, and other process additives. This segment also provides specialized chemicals and consulting services for the utility water treatment; and performance-based feed and control systems; and monitoring devices and remote system surveillance. Its A shland Performance Materials segment manufactures and supplies specialty chemicals and customized services to the building and construction, transportation, metal casting, packaging and converting, and marine markets. It also offers unsaturated polyester and vinyl ester resins, and gelcoats; adhesives and specialty resins; and metal casting consumables and design services. The company?s Ashland Consumer Markets segment produces and markets packaged automotive lubricants, chemicals, appearance products, antifreeze, and filters to the private passenger car, light truck, and heavy duty markets. It also operates a quick-lube franchise under the name of Valvoline Instant Oil Change. The company was founded in 1918 and is headquartered in Covington, Kentucky.
Hot European Companies To Own For 2014: Bacanora Minerals Ltd (BCN)
Bacanora Minerals Ltd. (Bacanora) is an exploration-stage company. The Company is a mining company engaged in exploration for mineral deposits in Mexico. The Company�� mineral properties include Tubutama Borate, Magdalena Borate and Sonora Lithium. The Company�� exploration activities include Borate Properties and Lithium Property. Mineramex Limited is the Company�� wholly owned subsidiary, whose assets consist of 99.9% interest of Minera Sonora Borax, S.A. de C.V. (MSB) and 60% interest of Minerales Industriales Tubutama, S.A. de C.V. (MIT). Tubutama Borate project consists of six mining concessions with a total area of 1,661 hectares. The concessions are located 15 kilometers from the town of Tubutama, and they are 100% owned by MIT. The Magdalena Borate project consists of seven concessions, with a total area of 15,508 hectares. The concessions are located 15 kilometers from the city of Magdalena and the city of Santa Ana, and are 100% owned by MSB.Hot Chemical Companies To Own In Right Now: Linde AG (LNAGF.PK)
Linde AG is a German company engaged in the gases and engineering sector. It operates two divisions: Gases and Engineering, as core divisions, as well as Gist. The Gases Division includes Healthcare, producing medical gases; and Tonnage, as its two global business units; as well as the two business areas Merchant and Packaged Gases, offering liquefied and cylinder gases, and Electronics. The Company�� products are used in the energy sector, for steel production, chemical processing, environmental protection and welding, as well as in food processing, glass production and electronics. The Engineering division offers planning, project development and construction of turnkey industrial plants used in fields, such as petrochemical and chemical industries, in refineries and fertilizer plants, to recover air gases, to produce hydrogen and synthesis gases, to treat natural gas, and in the pharmaceutical industry. As of August 13, 2012, the Company acquired Lincare Holdings Inc.
Hot Chemical Companies To Own In Right Now: Celanese Corporation (CE)
Celanese Corporation, a technology and specialty materials company, engages in manufacture and sale of value-added chemicals, thermoplastic polymers, and other chemical-based products. It operates through four business segments: Advanced Engineered Materials, Consumer Specialties, Industrial Specialties, and Acetyl Intermediates. The Advanced Engineered Materials segment offers specialty polymers for application in automotive, medical, and electronics products, as well as other consumer and industrial applications. The Consumer Specialties segment provides cellulose acetate flake, film, and tow that are primarily used in filter products applications; Sunett, a sweetener; and food protection ingredients, such as sorbates and sorbic acid for the food, beverage, and pharmaceutical industries. The Industrial Specialties segment produces emulsions and ethylene vinyl acetate (EVA) performance polymers. Its emulsions products are used in applications, such as paints and coatings, adhesives, construction, glass fiber, textiles, and paper; and EVA performance polymers are used in flexible packaging films, lamination film products, hot melt adhesives, medical products, automotive, carpeting and photovoltaic cells. The Acetyl Intermediates segment offers acetyl products, including acetic acid, vinyl acetate monomer, acetic anhydride, and acetate esters for use as starting materials for colorants, paints, adhesives, coatings, and medicines. It also provides organic solvents and intermediates for pharmaceutical, agricultural, and chemical products. The company offers its products directly, as well as through distributors and electronic marketplaces in North America, Europe, Africa, the Asia-Pacific, and South America. Celanese Corporation was founded in 2004 and is headquartered in Dallas, Texas.
Hot Chemical Companies To Own In Right Now: Potash Corporation of Saskatchewan Inc.(POT)
Potash Corporation of Saskatchewan Inc. produces and sells fertilizers and related industrial and feed products primarily in the United States and Canada. The company mines and produces potash, which is used as fertilizer. It also offers solid and liquid phosphate fertilizers; animal feed supplements; and industrial acids that are used in food products and industrial processes. In addition, the company produces nitrogen fertilizers, as well as nitrogen feed and industrial products, including ammonia, urea, nitrogen solutions, ammonium nitrate, and nitric acid. Further, it holds the right to mine 785,759 acres of land in Saskatchewan; and 58,263 acres of land in New Brunswick in Canada. The company sells its fertilizers primarily to retailers, dealers, co-operatives, distributors, and other fertilizer producers; industrial products primarily to chemical product manufacturers; and purified phosphoric acid directly to consumers of the product. Potash Corporation was founded i n 1953 and is based in Saskatoon, Canada.
Advisors' Opinion:- [By Vita]
People need to eat. Potash increases the yield of fertilizer. And in an overpopulated world with people moving into urban areas (less farmers feeding more mouths), demand will spike for whatever can increase that yield. Potash's stock is closely correlated to prices of the product Potash. It's worth noting that the stock represents billionaire financier George Soros's third largest position. Goldman Sachs just raised its rating on the the stock, saying "Investors are likely underestimating the 2012 US demand recovery that could see staggering yoy [year- over-year] percent increases in volume given the depth of the 2011 reduction and the atypically weak fall consumption levels."
- [By Sam Collins]
Canadian integrated fertilizer and feed products company, Potash Corporation of Saskatchewan (NYSE: POT), has been in a bull market since late 2008. Since then, it has risen from $18 to over $63.
It is the world’s largest diversified fertilizer company and, thus, in a unique position to supply the needed nutrients to grow crops for Third World countries that are in need of grain products. Several research analysts have recently raised their opinion on POT from “hold” to “buy,” including Canaccord Genuity and Gleacher & Company. POT has also been the subject of takeover rumors, but thus far, nothing has developed.?
Technically, the stock is in a long-term bull market. In December, POT broke out from a five-month consolidation, and last week, our in-house Collins-Bollinger Reversal (CBR) indicator issued a buy signal along with a buy from the slow stochastic. The two-month target for POT is $72, but it can be bought as a long-term position, as well.?
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