Methanex Corp

MX-T

Methanol is a key ingredient in a lot of products. It is also an additive to Chinese fuel so there are trade war concerns. It could get cheaper from here. The management team knows what they are doing. It is going to be a waiting game right now.

Likes it, but it has problems in Egypt. Good balance sheet, boosted dividend by 9%. Good long-term play, but whippy. Dividend safe as long as the economy's going well. Some upside, but not for the faint of heart.

It is economically sensitive and the global economy is slowing.

The whole chemical agricultural space is sensitive to commodity prices. So, he prefers companies that have more control over their inputs and outputs. MX does not fix. Rather, it's a trading stock to him. It's not a long-term hold, which is his investing style.

A cyclical. $90.23 is his model price if there isn't a recession. Nibble away now. Exit if it breaks below $60.

A producer of methanol. Slowing global economic growth is creating headwinds along with lower energy commodity prices.

(A Top Pick Apr 05/18, Down 19%) He would continue to hold it. It has gotten cheaper. Trades 7 times cash flow. ROE of 28%. The dividend is safe. A recent shareholder activist has been added to their Board. It is cheap. Yield 2.7%

$108.75 is his target price. It's a cyclical stock. Strong world growth will push this up, but if China slows down, this could even fall back to $61. Sell at $100.

Just started picking it up a week ago. Looks quite good. Nice sloped base. Wants it to get through $80. Good downside protection around $76. Some indicators are starting to turn up. Risk/reward pretty good in this seasonally strong period. Would take profits around $90, so more of a trade than a long-term hold.

A global leader. Their EBITDA should bottom in Q1. They started their Chilean plant on time and on budget. They're buying back 5% of its share. It's trading below its historic multiple. It's a play on Brent oil and global growth. A tailwind is Iranian curtailment. You can hold this for a long time. But it's a very cyclical name. (Analysts’ price target is $82.91)

(A Top Pick Mar 21/18, Down 1%) It produces a fuel octane booster. He sold out on a gain of 9.5%. It does not rank as high today as sales are increasing but earnings are falling. Not a candidate for purchase today.

Good buying after the recent sell-off. Put a stop at $71 or at least reduce. Perhaps $10 upside. Likes it.

Had a change of heart about commodity companies. They don't have a lot of control over input price of oil. Terrific balance sheet, dividend increases. There are worse places to put your money, but he wants less cyclical choices with more pricing power. Yield is 2.49%.

Still looks good. If you own, continue to hold, sees no reason to sell.