Shareholders Approve Quaker Chemical and Houghton Combination
On September 7, 2017, Quaker Chemical (KWR) shareholders approved the company’s combination with Houghton International.
Materials
Celanese: Another Round of Price Hikes on Some Products
Celanese’s stock price fell 1.3% and closed at $96.78 for the week ending September 8, 2017. It traded 4.40% above the 100-day moving average price.
H.B. Fuller to Acquire Royal Adhesives and Sealants
On September 4, 2017, H.B. Fuller (FUL) announced that it has entered into an agreement to acquire Royal Adhesives and Sealants.
Inside the Weyerhaeuser-Plum Creek Merger
Timberland REIT (real estate investment trust) Weyerhaeuser (WY) owns almost 13.1 million acres of timberlands across the US.
China’s Copper Imports: Did Data Spoil Freeport’s Party?
China imported 390,000 metric tons of unwrought copper and copper products in August 2017—compared to 350,000 metric tons in August 2016.
What Lies ahead for Weyerhaeuser in 2017?
Timberland REIT (real estate investment trust) Weyerhaeuser (WY) expects to continue its growth trajectory for the rest of 2017.
Inside China’s Steel Demand Indicators and Outlook for Iron Ore
To gauge the steel demand outlook in China, it’s important to keep an eye on the property sector.
What Strong Wood Means for Weyerhaeuser’s Momentum
Timberland REIT (real estate investment trust) Weyerhaeuser (WY) has been able to use the opportunities of the booming housing sector to its advantage.
Is LyondellBasell Stock Undervalued Compared to Its Peer?
As of September 7, 2017, LyondellBasell’s one-year forward PE multiple stands at 9.80x, while Eastman Chemical has one-year forward PE multiple of 10.70x.
Reading Miners’ Correlation Trends
Mining stocks Before investors park their money in mining stocks, it’s crucial for them to compare miners’ performance with gold. In this part of the series, we’ll analyze the correlations of AngloGold Ashanti (AU), Hecla Mining (HL), Kinross Gold (KGC), and Eldorado Gold (EGO) with gold. The VanEck Vectors Junior Gold Miners ETF (GDXJ) and the […]
Behind Weyerhaeuser’s Growth Trajectory
Timberland REIT (real estate investment trust) Weyerhaeuser (WY) reported upbeat earnings results for 2Q17, backed by higher sales and prudent cost management.
How Weyerhaeuser and Timberland REITs Came through the Fire
Timberland REITs (real estate investment trusts) in the US don’t seem to be in doubt about their continued growth momentum in the near future.
A Look at Mining Stocks’ Correlation with Gold
Miners’ correlation with gold In this part, we’ll look at mining stocks’ correlation with precious metals by comparing their price movement. Specifically, we’ll analyze Alamos Gold (AGI), First Majestic Silver (AG), B2Gold (BTG), and Royal Gold (RGLD). The mining stocks have recovered in the past few weeks. The Direxion Daily Gold Miners Bull 3x Shares […]
How Gold Is Coping amid Market Turmoil
Precious metals have maintained upward movement over the past month as geopolitical tensions hover.
Impact on CLF: Will the Trump Administration Listen to US Steelmakers?
The American steel industry has written to President Donald Trump requesting that he restrict steel imports immediately.
These Variables Could Drive Cleveland-Cliffs Higher
After experiencing a great 2016, US steel stocks are having a tepid 2017.
Aluminum’s Outlook: What Investors Can Expect
Aluminum prices have been strong in 2017 and have built on last year’s gains. The entire industrial metals space has come a long way since 1Q16.
The Correlation Analysis of Miners through August 2017
Silver Wheaton has a three-year correlation of ~0.70 with gold and a year-to-date correlation of ~0.80.
Tronox Completes the Sale of Alkali Chemicals Business
On September 1, 2017, Tronox (TROX) announced that it had completed the previously announced sale of its alkali chemicals business to Genesis Energy (GEL).
The Potash Capacity and Demand Landscape for 2017 and Beyond
The market environment for potash has seen a better recovery than nitrogen and phosphate fertilizers have seen.
What Do Westlake Chemical’s Valuations Suggest?
Westlake Chemical is trading at a premium to its peer Eastman Chemical. After good earnings in 1H17, analysts expect Westlake Chemical to post EPS of $4.66.
Sherwin-Williams’ Dividend Yield and Dividend Payout
Sherwin-Williams didn’t make any changes to its quarterly dividend rate. As a result, we can expect its fiscal 2017 dividend to be $3.40 per share.
China Steel Prices Are Touching Higher Highs: Impact on Iron Ore
According to Reuters, the September 2017 steel rebar futures contract on the Shanghai Futures Exchange has risen 40% year-to-date.
Why PPG Industries Is Trading at a Discount
As of August 25, 2017, PPG Industries’ one-year-forward PE (price-to-earnings) multiple stood at 15.80x.
Why China’s Lower Iron Ore Imports in July Could Be a One-Off
China’s iron ore imports for July 2017 fell 2.4% over July 2016 to 86.3 million tons.
Ashland Hikes Prices of Gelcoat in EMEA
On August 25, 2017, Ashland (ASH) announced that it would hike the prices of its Gelcoat portfolio. The price hike will be 75 euros per metric ton.
What Could Drive BHP Billiton’s Copper Costs in Fiscal 2018?
BHP Billiton’s (BHP) copper production fell 16.0% in fiscal 2017 to 1.3 million tons.
Does BHP Billiton Expect to Sustain Iron Ore Price Momentum?
BHP Billiton (BHP) attributed the rise in iron ore prices to higher pig iron production in China, the preference for higher grade materials, and improved steel margins.
Dividend Yield of Nucor
Nucor’s (NUE) PE ratio of 21.8x is pitted against a sector average of 19.4x. The dividend yield of 1.5% is pitted against a sector average of 1.4%.
Dividend Yield of Air Products & Chemicals
In this series, we’ll be looking at ten dividend aristocrats with low PE ratios. Dividend aristocrats are S&P 500 stocks that have raised their dividend payouts for at least 25 successive years.
Aluminum Prices Defy Gravity and Maintain the $2,000 Level
Aluminum prices have gained more than 22% so far in 2017. This trend was preceded by a 13.6% rise in 2016.
A Comparative Analysis of Steel Companies’ Leverage
Steel companies have high sensitivity to steel prices and their earnings tend to be volatile. Spot steel prices have been volatile in the last few years.
Celanese Increased Vinyl Acetate Monomer Prices
Celanese stock fell 1.0% and closed at $95.77. Despite the fall in the prices, the stock was trading 4.3% above the 100-day moving average price of $91.78.
What IFF’s Valuations Suggest about the Stock
As of August 17, 2017, International Flavors and Fragrances traded at a one-year forward PE (price-to-earnings) multiple of 22.20x.
Inside the Potash Margins of 5 Major Fertilizer Companies
Given the growth in potash shipments and the increase in price realization, it’s natural that the margins of potash producers improved YoY in 2Q17.
Assessing Gold Miners’ Capacity to Repay Debt through Earnings
Yamana Gold’s (AUY) net-debt-to-forward EBITDA ratio is 2.8x, which is higher than its peers’ ratios.
What’s Compass Minerals Doing to Gain a Cost Advantage?
Led by its superior assets, location, and geological advantages, Compass Minerals holds a competitive position with a wide economic moat rating.
Why Most Wall Street Analysts Recommend a ‘Hold’ for IFF
International Flavors and Fragrances continues to work towards its 2020 vision of increasing its revenue by $500 million by way of acquisitions.
Freeport and Copper: Is a Correction in the Cards?
Copper prices have shown strength over the last few trading sessions, which has helped the upwards price action of miners including Freeport-McMoRan (FCX), Glencore (GLNCY), and Southern Copper (SCCO).
Is Liquidity a Concern for Gold Miners after 2Q17 Earnings?
Newmont Mining had $5.5 billion in liquidity, including $3.1 billion in cash at the end of 2Q17. It has one of the best credit ratings in the sector.
Can Deere Beat the Analysts’ Earnings Estimate Again in Fiscal 3Q17?
Analysts are expecting Deere (DE) to post EPS earnings per share of $1.91 for fiscal 3Q17, which would be an increase of 23.2% on a YoY basis.
How IFF’s Flavors Segment Performed in 2Q17
The Flavors segment of International Flavors and Fragrances (IFF) has increased its revenue contribution to IFF’s overall revenue.
Is China Cutting Aluminum Capacity? Analyzing Producers’ Views
As we noted previously, aluminum prices have been strong this year. Strength has been driven by positive supply and demand dynamics.
How Albemarle’s Refining Solutions Segment Performed in 2Q17
Albemarle’s (ALB) Refining Solutions is the company’s lowest revenue generator, accounting for 25.0% of its total revenues in 2Q17 compared to 26.6% in 2Q16.
What’s Vale’s Base Metals Outlook?
As we saw in the previous two parts of this series, Vale’s (VALE) iron ore and coal production increased sequentially in 2Q17.
Albemarle’s 2Q17 Revenues Rose on Higher Volumes
ALB has guided its fiscal 2017 revenues to be in the range of ~$2.9 billion–$3.1 billion.
What’s the Outlook for Vale’s Iron Ore Division?
Vale’s (VALE) ferrous division accounted for ~82%.0% of its adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) in 2Q17.
These Factors Could Affect Vale Stock in 2H17
After significantly outperforming its peers in 1Q17, Vale’s (VALE) performance deteriorated in 2Q17.
Celanese Impacts Price Hikes on Acetyl Intermediates
On August 2, 2017, Celanese (CE) announced that it’s increasing the prices of a few acetyl intermediates. The price increase will be effective immediately.
Tronox Will Sell Its Alkali Chemicals Business
On August 2, 2017, Tronox (TROX) announced that it entered into a definitive agreement with Genesis Energy LP (GEL) to sell its alkali chemicals business.