Westlake Chemical Partners LP (WLKP)

Our PAST TOP PICK with WLKP has triggered its stop at $23.  To remain disciplined, we recommend covering the position at this time.  

Our PAST TOP PICK with WKLP is progressing well.  To remain disciplined, we recommend trailing up the stop (from $21) to $23 at this time.  

Our PAST TOP PICK with WLKP is stagnating.  To remain disciplined, we recommend trailing up the stop (from $18) to $21 at this time.  

Stockchase Research Editor: Michael O'Reilly

WLKP operates petrochemical facilities in the US and produces products like propylene and hydrogen from natural gas.  Low natural gas prices are increasing margins.  It distributes over 90% of its cash flow back to investors.  It trades at 14x earnings and supports a ROE of 40%.  We recommend setting a stop-loss at $18, looking to achieve $27 -- upside potential of 18%.  Yield 8.2%  

(Analysts’ price target is $25.33)