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DuPont – Lower Guidance But Big Savings Ahead

DuPont lowered its guidance for 2014 by around 6% last night, citing slower than expected demand in the corn market – too much to offset gains in soy.  Unlike FMC it appears that the DD problems were focused in the

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APD – A Wise, But Not Long-Term, Compromise

It is evident that APD has struggled to find the right candidate to replace John McGlade as CEO.  The search has taken longer than would have been expected – suggesting that multiple candidates were screened/approached. It is a shame that

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Westlake – Another Interesting Move – Vinnolit

We have written about some of the opportunities to move the US shale advantage to Europe.   While they are limited, they revolve around cost effective ways of moving low cost molecules from the US to Europe – or other parts

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DuPont/Tronox – The Math Says Yes – The Rest Says No

There is recent speculation that DuPont may explore a reverse Morris Trust (RMT) option as a means of divesting its performance chemicals, with Tronox as the “acquirer”/partner.  It is understandable why there would be such speculation – Tronox is the

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Dow – Lots of Talk – But Good Topics

In our recent research comparing the opportunity at DOW versus LYB we talked about the number of levers that DOW has available – other than the US ethylene margin – to add to earnings and value.  Yesterday we saw another

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Natural Gas – Chance of a Price Spike?

Natural gas pricing has come off a bit as we have moved through May, but has been volatile around the weekly inventory figures, moving up again yesterday.  While inventories have begun to be replenished, they remain well below the seasonal

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Westlake – Showing/Giving Us the Money

WLK has indicated that it will place its US ethylene and pipeline assets into an MLP and has filed a registration statement for an initial public offering of the MLP.  Not surprisingly the stock has reacted very favorably to the

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US Natural Gas – Not Out of the Woods Yet!

US natural gas pricing remains fairly close to its 52 week high (Exhibit 1), as the very low inventories created by the cold winter are showing limited signs of rebuild (Exhibit 2).  This is happening at a time in the

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DuPont – Sifting Through The Noise We Saw What We Wanted to See

Our positive stance on DuPont has been driven by two factors; valuation, and the belief that there is a real growth story in the core business.  Valuation support remains but it is much less of a factor today than it

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Petrochemical-Fest – A Summary of the Texas Gathering

General euphoria over the opportunity presented to the US by the abundance of shale gas – estimates of expected investments in the sector 30-40% higher than they were a year ago. There have been plenty of basic chemical investments announced

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