Category Archive for "Industrials/Basic Materials"

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LyondellBasell – Hard To Fault

First half oil prices were almost half the levels seen in 1H 2014, yet LYB has managed to produce 17% more net income than in the prior year. EPS growth is greater because of the significant share buyback, which looks

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Dow Chemical – Neither Fish nor Fowl

  Dow Chemical’s second quarter demonstrated a problem that has concerned investors – both passive and active – for some time. In the face of apparently very strong US and European basic plastics margins, the company did not do that

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DuPont – A Slim Victory but Have Any Lessons Been Learned?

DuPont may have won the battle, albeit by a small margin, but in our view it is still very much in danger of losing the war.  Beating Trian in the recent proxy fight may be a cause for celebration in

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Industrial Gas Pricing – Talking a Good Game

Our recent thoughts on Industrial Gas companies have focused on their ability to pull pricing and cost levers to grow top and bottom lines. We have been particularly focused on APD and what it will need to deliver to justify

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DuPont – Trian Engages the Big Gun!

DuPont – Trian Engages the BIG Gun! Trian, today, announced the formation of Trian Advisory Partners, charged with the following: “Trian Advisory Partners will provide support to Trian by identifying potential investment opportunities, assisting with due diligence, formulating strategic and operating

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More of the Same in 2015?

As we move into the New Year, initial expectations are for a broad continuation of the trends seen in 2014. As published in our monthly Industrials & Materials review, Transport and Packaging stocks were the big winners at the sector

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US Ethylene Stocks – Too Early to Call

While it is always tempting to upgrade a stock or a sector when ones competitors are finally throwing in the towel, it is too early to call for US ethylene. The two most exposed ethylene stocks, LYB and WLK, have

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China – Look For The Commodities That Are Less Oversupplied

China’s interest rate cut has got everyone’s attention today and the markets are rallying as are most commodities.  We have seen interest rate cuts all over the world over the last two years and their impact on economic growth/consumer spending

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The Power Of Positive Thinking – APD and the DD read-through

If the previous management of Air Products had delivered a quarter that included the following, the stock would have been down meaningfully on the day: A year on year decline in operating income from its core gases business A write

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The Most Important Question to Ask on Earnings Calls – Q4 Demand!

We have touched on the subject of inventory drawdown in Q4 in a couple of recent reports, but the more we think about the subject and refer back to history, the more we believe that this could be the most

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