Methanex Corp

It has a big mountain of existing shares held (the chart peaked then fell a lot), so it faces a huge challenge to rise. Stay away.

It came down from a $60 head and shoulders, breaking it. Now, it's consolidating. $60 was support and is now resistance. So, sell at $60.

Largest producer of methanol in the world, with 14% share of global market. Lots of free cash flow. Dividend has grown 9% annually over last 10 years, plus retired 17% of shares. Discounted valuation, so a good entry point. Yield is 3.8%. (Analysts’ price target is $53.88)

Seasonality is late-January to early-May. This has broken its downtrend line, so the outlook looks good.

The issue is that it is a cyclical. Fundamentals have been going down. Model price is $40.74, or a 13% downside.

It's had a strong sell-off, so now you can buy it.

It may be bottoming out now, so entering this is good. He has owned this before. Good fundamentals.

He sold it. It's been in a downtrend since mid-2018. Unless that changes, take profits.

It's okay to hold a small 1-2% position of this. He doesn't understand why this stock is down. They've bought back a ton of stock. Investors didn't like it when they announced a new plant--why? In a few years, they will have a new plant that will increase production and revenues. It's had a big dip due to an earnings dip, but once the tide turns, this will do very well. He likes their global market share with facilities around the world.

It closely tracks oil prices, which means their chart recently has been brutal. Oil is a tough space now.

Don't buy it here. Methanol prices have been declining, on decreasing demand and trade issues. Cyclical. Not a secular growth story. It's a cyclical growth story, so you have to buy it at the right time.

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.