Category Archive for "Industrials/Basic Materials"

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Monsanto – Left Out in the Cold?

As Monsanto takes visitors through its investor day this week, it does so in a very different environment than it has experienced previously. A story dominated for the last 15 years by innovation, high margins and industry leading growth, is

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Commodity Chemicals – It’s Not Just About Crude – It’s a Gas!

For the last 12 months – since the significant slide in crude oil – several US commodity chemical companies have effectively traded as a proxy to crude. For months, if crude has gone up then so has LYB, and to

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Dow Chemical – New Leadership Focus, Same Issues, But More Opportunity

It really is “All Change” in the chemical sector this year. While in this case Andrew Liveris is not retiring yet, we see this as a first move in a transition which allows Andrew to retire soon. He has been

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Agitation in Agriculture – Another CEO Change – Time to be Long

  Syngenta’s CEO replacement is now the second major leadership move in the Ag space if we include the DuPont CEO exit. In our Chemical Monthly, published last week we talked about the likelihood of more M&A and restructuring in

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Chemours – This Time Teflon Could Stick! – Implications for DuPont, Bye Bye Apollo

  This is likely a day of real schizophrenia for Chemours. On the one hand you have a rumored bid (Bloomberg) from Apollo. On the other hand you have the loss of the first Teflon related law suit – we

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DuPont: Is Some Sort of Breakup Now More Likely? We Would Own DD and DOW

With the exit of Chair and CEO, Ellen Kuhlman, and the interim replacement of Ed Breen, there will be lots of questions about; why so sudden, why Ed, why not Jim Gallogly and what comes next. One could take the

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APD Materials Spin – The Right Strategic Move, But Not Much Value Add

APD’s long expected announcement to spin off its Materials and Electronics came after the close last night. The company expects to complete the spin by the end of its 2016 fiscal year (September), which seems like a long lead time,

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DuPont – Investor Exodus

DuPont management may still have the faith that the science based strategy is right, but everyone else seems to disagree. Trian criticized the company for bloated costs and lack of returns on its R&D spend and we have echoed that

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Eastman – The Silver Lining of the Propane Cloud

Placing the wrong bet on propane prices may have been the best thing that could have happened to Eastman! Eastman is a roll up story and the thesis is that as the company adds complimentary and sometimes overlapping product/technology platforms

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LyondellBasell – Hard To Fault

First half oil prices were almost half the levels seen in 1H 2014, yet LYB has managed to produce 17% more net income than in the prior year. EPS growth is greater because of the significant share buyback, which looks

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