4 Jan

Ashland Increases Composite Product Prices in India

WRITTEN BY Peter Neil

Ashland announces a price increase

On January 3, Ashland (ASH) announced that it will increase composite product prices. The price increase is limited to India. The prices will increase by $65 per ton. The price increase will be effective on January 3 or as the contract allows.

Ashland Increases Composite Product Prices in India

Ashland cited the continued increase in raw material prices as the main driver for the price increase. In the fourth quarter, Ashland’s composite segment reported sales of $237 million—8% growth compared to the fourth quarter of 2017. The impact of the price increase will be visible in the second quarter.

Ashland’s performance in 2018

In 2018, Ashland remained flat and fell 0.3%. Ashland is trading 12.85 below its 100-day moving average price of $79.48. Volatility in the stock market, which triggered the sell-off, resulted in the steep decline in Ashland’s stock price in December. The company’s 14-day relative strength index of 39 indicates that the stock isn’t overbought or oversold. However, analysts are bullish on the stock with a consensus target price of $93.90, which implies a return potential 35.5% over the closing price on January 3. With Ashland signing an agreement to sell its composites business and butanediol facility for an estimated value of $1.1 billion, the company’s debt will likely decrease significantly and bring down its interest expenses. At the same time, organic growth is expected to drive Ashland’s revenues and net income. Investors could hope for better returns in 2019.

Investors could hold Ashland indirectly by investing in the Invesco DWA Basic Materials Momentum ETF (PYZ). PYZ has invested 2.3% of its portfolio in Ashland. The fund also provides exposure to LyondellBasell (LYB), Air Products and Chemicals (APD), and DowDuPont (DWDP) with weights of 3.9%, 3.8%, and 3.5%, respectively.

Latest articles

Tortoise Capital Advisors bought 9.5 million Kinder Morgan shares in Q3. That was the biggest addition among the company’s top 10 institutional investors.

Although near-term weakness exists in the cannabis stocks, we expect Cannabis 2.0 products or cannabis-derived products could act as a catalyst.

The US, Saudi Arabia, and Russia are the world’s top three crude oil producers. Let’s take a look at the world’s top oil players by production volumes.

Tesla’s Model Y is gearing up to enter the EV market next summer. Ford heated up this space with its announcement of the Mustang Mach-E launch in late 2020.

Yesterday, Comcast (CMCSA) rose 0.5% and closed at $44.81, with a market capitalization of $203.9 billion. But can you expect a further rise?

Advanced Micro Devices (AMD) is one of the best-performing semiconductor stocks of 2019, beating 100% year-to-date growth.