
TSE:MX
This summary was created by AI, based on 4 opinions in the last 12 months.
Methanex Corp (MX-T) has garnered mixed opinions among experts regarding its current standing and future potential. One expert reported a successful trading experience, having bought shares around $50 and selling near $75, while noting a cautious approach towards new investments at the present time. Another review highlighted the strength in the company's RSI amidst positive trends in fertilizers and chemicals due to geopolitical tensions, suggesting continued momentum with an optimistic price target of $89.31. A third expert pointed to a recent recovery from lower levels, indicating potential for further upside if it breaks through old resistance. However, some caution is advised as fundamentals are showing a 32% year-over-year decrease in EPS, combined with expected revenue declines. Despite these challenges, the stock is noted for its decent dividend yield and potential for a turnaround with the upcoming earnings report on July 30, which may indicate an upside surprise.
Why correlated to oil? He owns it and was disappointed they decided to cut the dividend by 90% -- the first cut ever. It had been yielding 11% up to that, so the market was expecting some cut. It correlates to natural gas an input, but its output is related to gasoline as methanol is an additive to the fuel. He thinks going forward, although this is a cyclical business they should be able to weather the recession as it has in the past. He expects juicy capital appreciation as it trades 0.8 times book value. They have idled high cost facilities. It produces 13% of the world's methanol. Not a dividend payer anymore, but good upside on capital.
They produce a product that is loosely a substitute for gasoline. The issue is that they produce in foreign jurisdictions. He does not like to worry about the different demand characteristics compared to gasoline. He would not bother with it at these levels although it could be a trading vehicle. He prefers CNQ-T.