Sunday Thematic & Weekly Recap

Dow – The Path To Private – A Viable Option For The Unloved?
April 24, 2022
Commodities Mentioned:
PVC, Polypropylene, Polyethylene, Polyurethane, Polycarbonate, Polystyrene, PET, Minerals, Carbon Dioxide, Hydrogen, Natural Gas/NGLs, Crude/Naphtha, Wind, Solar, Biofuels, Renewable Diesel, Sustainable Aviation Fuel, Fossil Fuels, Coal, Metals, Nickel, Lithium, Methanol, Ethanol, Corn, Soy, Canola, LNG, Recycled Plastics
Companies Mentioned:
CF Industries, Ineos, Nova Chemicals, Dow, LyondellBasell, CP Chemical, Westlake, Union Pacific, BNSF, Halliburton, Plug Power,, Axens, Aramco, Amcor, ExxonMobil, Clariant, Scientific Design, Lithium Americas, Incitec Pivot, Toyo Ink, Yansab, HydrogenPro, Rivian, Sumitomo Chemical, JERA, Lummus, Glencore, Envision AESC, CATL, Inpex, Kansai Electric Power, Colonial Pipeline, Pemex, Jindal Steel and Power, BDI-Bioenergy, Indian Oil, Larsen & Toubro, ReNew, Woodfibre LNG, LG Energy, CPC, Sunfire, JB Hunt, Avient, Siemens Gamesa, DSM, BASF, Sika, Givaudan, Ashland, Lanxess, Olin, Neste, Shell, Talos Energy, Topsoe, Rio Tinto, Principal Financial, Excelerate Energy, PHX Minerals, AOC, Asahi Kasei, Iluka Resources, Satorp, Syrah Resources, Air Liquide, Aria Foods, Technip Energies, Alterra Energy, Williams, Nel Hydrogen, Gunvor, Sasol, Procter & Gamble, Wood, Chemtrade Logistics, Nexus Circular, Danimer Scientific, TechnipFMC, Perma-Pipe, Parker Holland, Synasia, TotalEnergies, ENEOS, SK Innovation, Gevo, Deloitte, EY, Aemetis, Clean Energy Fuels Corp, Archaea, Chevron, REGI, bp, Methanex, Linde, Air Products, Wood Mackenzie, AkzoNobel, Evonik, Shin-Etsu, Formosa Plastics, Borealis, BHP, Alcoa, Anglo American, Compass Minerals, Sinopec, Thyssenkrupp, Lone Cypress, Blackrock, Amazon, Sunstyle, Nippon Paint, Kinder Morgan, Baker Hughes, Eni, PepsiCo, Valmont, Vizien, Sleep Number, Snap-On, Nestle, Kopin, PPG, Colgate Palmolive, Milliken & Company, Trane Technologies, Nuro, American Express, Valero, Motiva, Schlumberger, Shintech, Orbia, DuPont, Grupo Orbis, Arlanxeo, Henkel, Mitsubishi Heavy Industries, Renault, Osaka Soda, Ferro, Prince International, Tesla, Ferro, Netflix, EAG Services, Equinor, EOG, Gazprom, OMV, Kogas, Solvay, Everfuel, H2 Industries, Trinseo 

C-MACC Sunday Thematic & Weekly Recap 115

Dow – The Path To Private – A Viable Option For The Unloved?

  • Chemical sector valuations face downward pressure from macro uncertainty and ESG concerns, frustrating for many feeling undervalued. We discuss options.
  • High sector free cash flow conversion enables the buyback of stock, a good risk-adjusted option relative to growth investment for those with a low cost of debt.
  • Companies with competitive decarbonization paths make good take-private targets, as valuations should jump for the best once ESG measures normalize.
  • We also discuss the critical need for both an agriculture and energy policy in the US if we are to support both the LNG industry and the renewable fuels industry.
  • Otherwise, we look at polyethylene prices in the US, more inflationary indicators, and transport bottlenecks that continue to cause problems.  

Last week we discussed 29 Chemicals and related products and 156 Companies.

See PDF below for all charts, tables and diagrams

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