Category Archive for "Industrials/Basic Materials"

Home »

China Part 2: A Rational China? It Depends on Where You are Standing

In a recent interview with the China Daily, the CEO of Alcoa talked about the unprofitable nature of almost half of the China based Aluminum producers.  We have no doubt that this is at least approximately accurate if not exact. 

Read More

“I am worried about new capacity in China” – “How do I improve my business”

Talk to any investor today about commodities, and improving demand in the US and perhaps a floor in European demand, and you will eventually hear the first half of the title of this short blog.  Today we hear that Rio

Read More

Potash – Breaking Up Apparently Isn’t That Hard to Do

All discarded lovers should be given a second chance, but with someone else.” –          Mae West This morning, Belaruskali, the erstwhile cartel partner of Uralkali announced that it had reached a preliminary agreement with a Qatar-based fertilizer marketing company, Muntajat,

Read More

Additional Thoughts on the Disruption in the Fertilizer Market

The global fertilizer market remains in a state of shock in the wake of Uralkali’s announcement that it would abandon the output limits that have supported global potash prices. Uralkali announced that it was leaving the export cartel in which

Read More

Fertilizer Turmoil

It has been an interesting 24 hours for fertilizer stocks, to say the least.  Yesterday, Dan Loeb said in an investment letter that his firm had taken a stake in CF Industries (CF), North America’s largest nitrogen fertilizer manufacturer.  The

Read More

Chemicals: Complexity Hitting Home – But Volatile Distraction is the Focus

In recent research we have discussed the problems of a too complex portfolio, in detail with regard to the difficulties investors have in understanding and valuing a complex story and in passing about the management challenge of trying to drive

Read More

Where is the Growth? – Try Industrial Gas

Looking through a number of earnings releases and transcripts this week and listening to several of the calls, the overwhelming factor that grabs our attention is the total lack of any expectation of industrial growth anywhere in the world in

Read More

Aluminum – NYT Article; Interesting but Perhaps Missing a Key Point or Two

The NY Times’ interesting expose on the Aluminum “Middle Men” and how much money they make by simply holding inventory and moving it around, illustrates a couple of things.  It shows how an exchange can be misused, relative to its

Read More

DuPont – A Reminder of the Opportunity

The July 17th movement in DD was driven by a disclosure that activist investor Nelson Peltz was building a stake in the company.  In our research on DD earlier in the year, we highlighted a general discount in the stock

Read More

Ethylene – Unlikely to Be a Quick Fix for Williams

Yesterday’s tragic incident at the Williams Ethylene facility in Louisiana should be put into context from an event perspective before it is possible to draw conclusions about its market impact.   Ethylene producers and consumers rallied in the market after the

Read More
test