On Tuesday, DuPont (NYSE: DD ) will release its latest quarterly results. The key to making smart investment decisions on stocks reporting earnings is to anticipate how they'll do before they announce results, leaving you fully prepared to respond quickly to whatever surprises inevitably arise. That way, you'll be less likely to have an uninformed, knee-jerk reaction that turns out to be exactly the wrong move.
As the chemical-industry representative in the Dow Jones Industrials (DJINDICES: ^DJI ) , DuPont makes a wide variety of products for businesses including agriculture, electronics, plastics, and pharmaceuticals. But given the overall global economic weakness, can the company keep producing the results investors want to see? Let's take an early look at what's been happening with DuPont over the past quarter and what we're likely to see in its quarterly report.
Top 5 Chemical Companies To Invest In 2014: E.I. du Pont de Nemours and Company(DD)
E. I. du Pont de Nemours and Company operates as a science and technology company worldwide. It operates in seven segments: Agriculture & Nutrition, Electronics & Communications, Performance Chemicals, Performance Coatings, Performance Materials, Safety & Protection, and Pharmaceuticals. The Agriculture & Nutrition segment provides hybrid seed corn and soybean seed, herbicides, fungicides, insecticides, value enhanced grains, and soy protein under the Pioneer brand name. The Electronics & Communications segment supplies materials and systems for photovoltaic products, consumer electronics, displays, and advanced printing. The Performance Chemicals segment offers fluorochemicals, fluoropolymers, specialty and industrial chemicals, and white pigments for various markets, such as plastics and coatings, textiles, mining, pulp and paper, water treatment, and healthcare. The Performance Coatings segment supplies high performance liquid and powder coatings for motor vehicle origi nal equipment manufacturers (OEM); the motor vehicle after-market; and general industrial applications, such as such as coatings for heavy equipment, pipes and appliances, and electrical insulation. The Performance Materials segment provides polymers, elastomers, films, parts, and systems and solutions for the automotive OEM and associated after-market industries, as well as electrical, electronics, packaging, construction, oil, photovoltaics, aerospace, chemical processing, and consumer durable goods. The Safety & Protection segment primarily offers nonwovens, aramids, and solid surfaces for the construction, transportation, communications, industrial chemicals, oil and gas, electric utilities, automotive, manufacturing, defense, homeland security, and safety consulting industries. The Pharmaceuticals segment represents its interest in the collaboration relating to Cozaar/Hyzaar antihypertensive drugs. The company was founded in 1802 and is headquartered in Wilmington, Dela ware.
Advisors' Opinion:- [By Fitz Gerald]
DuPont rated very well on our EquityAnalytics scoring led by its focus on specialty chemicals that have higher economic moats than more general chemicals that have higher competition. The company, additionally, offers an outstanding dividend at 3.5%. We believe the company is also undervalued at a 12.7 PE ratio and should be trading at a higher multiple in 2012. The company has done a solid job of improving profitability over the past three years, and we believe that improvement should continue in 2012. If margins do get a bump, the PE ratio becomes even more suspect at these levels. We have a $59 PT.
Allocation: $2500
Entry: 46.85
Target: $51.54, $56.22, and $59
Top 5 Chemical Companies To Invest In 2014: PPG Industries Inc.(PPG)
PPG Industries, Inc. manufactures and supplies protective and decorative coatings. The company offers coatings products for automotive and commercial transport/fleet repair and refurbishing, specialty coatings for signs, and light industrial coatings; and sealants, coatings, and technical cleaners/transparencies for commercial, military, regional jet, general aviation aircraft, and transparent armor for military land vehicles. It also provides coatings and finishes for the protection of metals and structures to metal fabricators, heavy duty maintenance contractors, and manufacturers of ships, bridges, rail cars, and shipping containers; and coatings to painting and maintenance contractors. In addition, PPG sells industrial and automotive coatings to manufacturing companies; adhesives and sealants for the automotive industry; metal pretreatments and related chemicals; and coatings and inks for aerosol, food, and beverage containers. Further, it supplies lenses, sunlenses, a nd optical lens materials; amorphous precipitated silicas for tire and battery separator markets; and Teslin substrate used in radio frequency identification tags and labels, e-passports, drivers? licenses, and identification cards applications. Additionally, PPG offers chlor-alkali and derivative products, such as chlorine, caustic soda, vinyl chloride monomer, chlorinated solvents, calcium hypochlorite, ethylene dichloride, hydrochloric acid, and phosgene derivatives to chemical processing, rubber and plastics, paper, minerals, metals, and water treatment industries. It also produces flat glass and continuous-strand fiber glass for commercial and residential construction, wind energy, energy infrastructure, transportation, and electronics industries. PPG sells its products through company-owned stores, home centers, paint dealers, and independent distributors, as well as directly to customers worldwide. The company was founded in 1883 and is headquartered in Pittsburgh, Pe nnsylvania.
Top Financial Companies To Watch For 2014: LyondellBasell Industries NV(LYB)
LyondellBasell Industries N.V. manufacturers and sells chemicals and polymers, refines crude oil, produces gasoline blending components, and develops and licenses technologies for production of polymers. The company?s Olefins and Polyolefins segment offers olefins, including ethylene, propylene, and butadiene; aromatics, such as benzene and toluene; polyolefins, which comprise polypropylene (PP), high-density polyethylene, low-density polyethylene, and linear low-density polyethylene; specialty polyolefins, including catalloy process resins, PP compounds, and polybutene-1 resins; and ethylene derivatives, which comprise ethanol. Its Intermediates and Derivatives segment provides propylene oxide (PO); PO co-products, including styrene monomers and TBA derivative isobutylene; PO derivatives, such as propylene glycol, propylene glycol ethers, and butanediol; acetyls, such as methanol, acetic acid, and vinyl acetate monomers; ethylene derivatives, which comprise ethylene oxide , ethylene glycol, and ethylene glycol ethers; and flavor and fragrance chemicals. The company?s Refining and Oxyfuels segment offers gasoline and components, ultra low sulfur diesel, jet fuel, and lube oils; diesel, feedstock, fuel oil, gasoline, and bitumen; and gasoline blending components, including methyl tertiary butyl ether, ethyl tertiary butyl ether, and alkylate. Its Technology segment develops and licenses polyolefin and other process technologies. This segment also develops, manufactures, and sells polyolefin catalysts, as well as provides technology services, which comprise safety reviews, training and start-up assistance, engineering services for process and product improvements, and manufacturing troubleshooting. LyondellBasell Industries N.V. has operations in the Americas, Europe, Asia, and internationally. The company was founded in 2005 and is based in Rotterdam, Netherlands. LyondellBasell Industries N.V. is a subsidiary of Prochemie GmbH.
Advisors' Opinion:- [By ETF Authority]
LyondellBasell (LYB) manufactures and sells chemicals and polymers, refines crude oil, produces gasoline blending components, and develops and licenses technologies for the production of polymers. It has been given a buy rating by UBS Investment Research. On December 10, 2010, LyondellBasell announced the deve lopment of a new Asian Propylene Oxide project with its joint venture partner. Dividends of $70-90 million per year are expected from this project. UBS' global operating rate forecast, in addition to an assumed start-up date of 2016, supports a margin estimate of $0.30/lb. Also, the plant is assumed to have a capacity of 250k million tons per annum. Shares of the company are currently trading around $39 per share. Cabot Corporation (CBT) operates as a specialty chemicals and performance materials company and is a competitor of LyondellBasell. Cabot has a dividend yield of 2.1%, while LyondellBasell has a dividend yield of 2.9%. LyondellBasell also generated a higher return-on-equity of 24.5%, versus the 13.5% generated by Cabot. Hedge funds prefer LYB over CBT. At the end of the third quarter, there were 44 hedge funds with bullish bets on LyondellBasell, vs. 14 for Cabot. Howards Marks' Oaktree Capital initiated a brand new po sition in LYB during the third quarter.
- [By Harding]
LyondellBasell Industries NV (NYSE:LYB): On 3/31/11 Viking Global Investors reported holding 3,878,500 shares with a market value of $153,394,672. This comprised 1.32% of the total portfolio. On 6/30/11, Viking Global Investors held 11,800,693 shares with a market value of $454,562,700. This comprised 3.81% of the total portfolio. The net change in shares for this position over the two quarters is 7,922,193. About the company: LyondellBasell Industries NV is a manufacturing company.? The Company produces chemicals, fuels, and polymers used for packaging, clean fuels, durable textiles, medical applications, construction materials, and automotive parts.? LyondellBasell Industries operates globally and is headquartered in the Netherlands.
Top 5 Chemical Companies To Invest In 2014: Bacanora Minerals Ltd (BCN)
Bacanora Minerals Ltd. (Bacanora) is an exploration-stage company. The Company is a mining company engaged in exploration for mineral deposits in Mexico. The Company�� mineral properties include Tubutama Borate, Magdalena Borate and Sonora Lithium. The Company�� exploration activities include Borate Properties and Lithium Property. Mineramex Limited is the Company�� wholly owned subsidiary, whose assets consist of 99.9% interest of Minera Sonora Borax, S.A. de C.V. (MSB) and 60% interest of Minerales Industriales Tubutama, S.A. de C.V. (MIT). Tubutama Borate project consists of six mining concessions with a total area of 1,661 hectares. The concessions are located 15 kilometers from the town of Tubutama, and they are 100% owned by MIT. The Magdalena Borate project consists of seven concessions, with a total area of 15,508 hectares. The concessions are located 15 kilometers from the city of Magdalena and the city of Santa Ana, and are 100% owned by MSB.Top 5 Chemical Companies To Invest In 2014: PFB Corporation (PFBOF.PK)
PFB Corporation (PFB) is a Canada-based company. The Company, together with its subsidiaries, is engaged in the manufacturing of insulating building products made from expanded polystyrene (EPS) materials and marketing these products in North America. Its main brands include PlastiSpan EPS Product Solutions; Advantage ICFS, Insulspan SIPS, Riverbend Timber Framing and Precision Craft. Expandable polystyrene resin is manufactured at PFB�� polymer plant located in Crossfield, Alberta, for use in downstream EPS manufacturing operations. Plasti-Fab EPS Product Solutions supply the EPS foam core material used to manufacture Insulspan SIPS. Riverbend Timber Framing structures are typically sold with an accompanying Insulspan SIPS enclosure package. Advantage ICF Systems are insulating concrete forming systems that are employed to build insulated foundations and walls from concrete in both residential and commercial markets. On February 1, 2011, the Company acquired Precision C raft Group.
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