Praxair to supply from Burns Harbor, Indiana
On April 17, 2017, Praxair (PX) announced that it had begun a 2,400-ton-per-day air separation unit at Burns Harbor, Indiana. This development should help supply oxygen and nitrogen needed by refining and steel customers in the area. This facility should not only help existing customers but also help Praxair to serve new customers that need large volumes of oxygen, nitrogen, or hydrogen.
Joe Abdoo, North Region vice president of Praxair’s US industrial gasses business, said, “This investment further strengthens Praxair’s supply reliability in the region, enabling us to help our customers grow and be more efficient.” However, Praxair did not discuss the financial aspects of this facility.
Praxair’s stock performance for the week ended April 21
For the week ended April 21, 2017, PX closed at $119.58 and rose 1.8% for the week. PX’s stock price traded 1% above the 100-day moving average price of $118.41. The gain in the stock price for the week helped the stock trade above its 100-day moving average price, indicating a turnaround. On a year-to-date basis, PX has risen 2%. With a 14-day relative strength index (or RSI) of 56, PX is neither overbought nor oversold. An RSI of 70 indicates that a stock is overbought, and a score of 30 suggests that a stock is oversold. PX’s 52-week low is $106.91, and its 52-week high is $125. PX outperformed the iShares U.S. Basic Materials ETF (IYM), which gained 1.4% for the week ended April 21, 2017.
IYM invests 5.8% of its holdings in Praxair. Some of the top holdings of the fund include Dow Chemical (DOW), DuPont (DD), and Monsanto (MON), which have weights of 11.8%, 11.5%, and 11.60% respectively, as of April 21, 2017.