
TSE:MX
This summary was created by AI, based on 3 opinions in the last 12 months.
Experts have mixed but generally positive views on Methanex Corp (MX-T), reflecting a variety of trading strategies and fundamental assessments. One trader noted a successful trade, selling at $75 after purchasing at $50, emphasizing a focus on price action and potential breakouts. Another expert highlighted the strong performance indicated by the Relative Strength Index (RSI), attributing this rally to the ongoing geopolitical situation affecting fertilizers and chemicals, suggesting continued momentum even beyond current events. A third analysis mentioned the stock's recent pullback after a breakout, indicating it needs to maintain support around $55-56 to capitalize on its fundamental strengths. Overall, while some are cautious about immediate purchases, there is an underlying confidence in its long-term potential depending on market conditions.
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.