Methanex Corp (MX.TO)

Pays 2.5%, 2% dividend. They continue to generate free cash flow to fund projects, yet do share buybacks. Good balance sheet. A fine name. They track Brent Oil. A good proxy on the global economy. A quality name. Hold and buy on weakness.

Nice long-term trend and has long, deep support at $80. Sharp increase since January is really stable.

It's done well. It's broken above its rising trend since last-2016. Not seasonal now. Look for a base below $80. Wait.

It's done well. It's broken above its rising trend since last-2016. Not seasonal now. Look for a base below $80. Wait.

Chemical stocks are cyclical and now behaving well. He likes it. The commodities group is performing well, benefitting from a stronger economy. MX should trade higher throughout 2018. But with cyclicals, buy them with they look cheap,
and sell when they look pricey.

Excellent company. The valuation justifies the business. Has access to low-cost gas. Well positioned company. All the fundamentals tick off for him.

The stock has done well. It's the world's largest producer of methanol, used to produce chemicals. She won't buy it here, but if she owned enough, she would probably take some profits here, and buy on a pullback--it has a choppy chart.

This is a really good free cash flow generator. There has been speculation of a takeout of Methanex, which is probably one of the reasons the stock price has performed so well lately.

They are the largest player in terms of methanol production globally. They are diversified globally. It is in the top 4% in valuation. They have a 23% return on equity. A low payout ratio and a bit of a yield. They have been speculated to be a target for CF industries. (Analysts’ target: $82.18).

This company has had a dramatic turnaround in their business, he says, and they do not own it yet. The payout ratio is only 12% and sales are up 45% on the year. ROE is now 27% from negative a year ago. Earnings are expected to be up 35%. Technical analysts suggest if it can break above $81 it can challenge $100 per share. Yield 2.2%. (Analysts’ price target is $81.51 )

He likes this sector and as the economy improves so will this stock. A price correction would be a good time to buy on dips. (Analysts’ price target is $80.00 )