Monthly Thematic Piece

Bargain Hunting – Big Game and Niche Targets
April 9, 2020
Products Mentioned:
Ethylene, Naphtha, Ethane, Industrial Gases, Lithium, TiO2
Companies Mentioned:
Sasol, Oxychem, Westlake, Sasol, CPChem, Nova, LyondellBasell, Dow, Trinseo, Olin, Braskem, Eastman, DuPont, Quaker, Hexcel, Solvay, BASF, Kraton
Subjects Covered:
M&A, Cost Curves, Commoditization, Restructuring, Trough Margins, Timing, Aerospace, Autos, Dividends and Balance Sheets

Perspectives No 9

Bargain Hunting – Big Game and Niche Targets

  • Its too early to find bargains yet and fundamentals weakness, oversupply and a flat global cost curve could create margin and earnings declines for basic chemicals in 2020 not evident in any current models surprising both companies and investors.
  • Significant restructuring likely, some under bankruptcy protection, creating opportunities for public market investors, smart consolidators and private equity  


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