The massive supply of natural gas that has resulted from new drilling technologies applied to U.S. shale fields over the past few years has been a boon not only to consumers who use gas for heating their homes, but also to a variety of companies, including chemical, steel and fertilizer manufacturers, for whom energy costs are substantial.
The U.S. has been inundated with so much cheap natural gas, in fact, that trucking companies are increasingly switching over to gas-powered engines for their fleets, while auto manufactures are offering hybrid vehicles that have the ability to burn both compressed natural gas and gasoline.
And now, the next logical step of the natural gas-fueled transformation of the transport industry -- gas-powered locomotives -- looks to be in its early stages.
U.S. railroads show interest in natural gas
Since the 1950s, U.S. locomotives have been powered mainly by diesel. But with the combination of relatively low natural gas prices and the threat of more stringent emissions standards for locomotives slated to take effect in 2015, many of the nation's biggest rail companies are reconsidering their traditional fuel of choice.
Top Chemical Stocks To Buy For 2015: Lanxess AG (LXS)
Lanxess AG is a Germany-based chemical holding company. Its activities are divided into three main segments. The Performance Polymers segment encompasses the activities of the Lanxess Group in the production of rubber and plastics, and includes Butyl Rubbers, Performance Butadiene Rubbers, Technical Rubber Products and Semi-Crystalline Products business units. The Advanced Intermediates segment is engaged in the development, production and marketing of industrial and fine chemicals and includes Basic Chemicals and Saltigo business units. The Performance Chemicals segment combines the Group's application-oriented activities in the field of process and functional chemicals, and includes Material Protection Products, Inorganic Pigments, Functional Chemicals, Leather, Rhein Chemie, Rubber Chemicals and Ion Exchange Resins business units. The Company operates worldwide through its subsidiaries. Advisors' Opinion:- [By Jonathan Morgan]
Lanxess AG (LXS), which makes specialty chemicals, plastics, and rubber used in car tires, jumped 6.6 percent to 57.21 euros. Michelin & Cie, Europe�� largest tiremaker, today reiterated its 2013 profit forecast as growing demand for high-margin tires for mining vehicles helps offset declining demand in Europe.
- [By Sofia Horta e Costa]
ThyssenKrupp AG (TKA), Germany�� largest steelmaker, rose to a five-week high. YOC AG (YOC) surged the most in more than three months after the mobile-phone advertising company said it sold 1.3 million euros ($1.7 million) of shares to increase capital. Lanxess AG (LXS), the chemical maker that joined the DAX in September, retreated 3.4 percent.
Top Chemical Stocks To Buy For 2015: BioAmber Inc (BIOA)
BioAmber Inc. (BioAmber), incorporated on October 15, 2008, is a chemical company. The Company manufactures its bio-succinic acid in a facility using a commercial scale 350,000 liter fermenter in Pomacle, France. During the year ended December 31, 2011, the Company produced 487,000 pounds, or 221 metric tons, of bio-succinic acid at this facility. Succinic acid is used to manufacture a range of products used every day, including plastics, food additives and personal care products, and can also be used as a building block for a range of derivative chemicals. The Company produces and sells bio-succinic acid using its process for petroleum-derived succinic acid. It also has additional bio-based products under development with partners including bio-succinic acid derivatives, such as BDO, and applications of bio-succinic acid, such as plasticizers, polyurethanes and de-icing solutions. During 2011, the Company created a wholly owned subsidiary, BioAmber International, S.a.r.l.
The Company develops bio-succinic acid for a range of markets, such as personal care products and food additives, plasticizers, polyurethanes, resins and coatings. The applications for bio-succinic acid include plasticizers, polyurethanes, personal care products, de-icing solutions, resins and coatings, food additives, lubricants and other products. Plasticizers are organic esters that are primarily used to make flexible polyvinyl chloride. Adipic acid is used in polyester polyols, which are used to make polyurethanes. Polyurethanes are used in, among other things, soles for footwear, molded foams for automotive applications, such as car seats and arm rests, and non-foam applications such as coatings, adhesives and sealants. Other applications of bio-succinic acid that are developed and tested by potential customers, which include anti-freeze solutions, solvents, water treatment chemicals and effervescence agents such laundry tablets and bath salts.
The Company competes with Gadiv Petrochemical Industries ! Ltd., Mitsubishi Chemical, DSM, Anqing Hexing Chemical Co Ltd, Anhui Sunsing Chemicals Co., Ltd., Genomatica, Inc., Myriant Corporation and Roquette Freres S.A.
Advisors' Opinion:- [By Maxx Chatsko]
He believes several companies have set the bar precipitously low to start the year despite targeted developments expected to occur before the start of 2014. Watch the following video for his thoughts on potential positive surprises awaiting investors in�Amyris� (NASDAQ: AMRS ) ,�BioAmber� (NYSE: BIOA ) ,�Codexis� (NASDAQ: CDXS ) , and�Solazyme� (NASDAQ: SZYM ) .
- [By Matt Jarzemsky]
Out of the 2013 vintage, some of the best performers so far this year have been early-stage healthcare firms like BioAmber Inc.(BIOA), up 86% year-to-date through Thursday, and Kindred Biosciences Inc.(KIN), up 82%. A number of high-flying tech startups have also continued to soar. Cybersecurity firm FireEye Inc.(FEYE) has gained 67% since the start of the year. Online coupon company RetailMeNot Inc.(SALE) is up 48%.
Top 5 Cheapest Companies To Invest In Right Now: LSB Industries Inc (LXU)
LSB Industries, Inc., incorporated on January 21, 1977, is a diversified holding company involved in manufacturing and marketing operations through its subsidiaries. The Company together with its wholly owned subsidiaries owns Chemical Business and Climate Control Business. Chemical Business manufactures and sells nitrogen-based chemical products produced from four facilities located in El Dorado, Arkansas; Cherokee, Alabama; Pryor, Oklahoma, and Baytown, Texas for the agricultural, industrial, and mining markets. Climate Control Business manufactures and sells a range of heating, ventilation and air conditioning (HVAC) products in the niche markets the Company serves consisting of geothermal and water source heat pumps, hydronic fan coils, large custom air handlers, modular geothermal and other chillers and other related products used to control the environment in commercial/institutional and residential new building construction, renovation of existing buildings and replacement of existing systems. On October 31, 2012, Zena Energy LLC acquired working interests in certain natural gas properties located in Wyoming County, Pennsylvania, within the Marcellus Shale.
Chemical Business
The Company�� products in the Chemical Business include high purity and commercial grade anhydrous ammonia for industrial and agricultural applications, industrial and fertilizer grade ammonium nitrate (AN), urea ammonium nitrate (UAN), sulfuric acids, nitric acids in various concentrations, nitrogen solutions, diesel exhaust fluid (DEF) and various other products. The Company�� Chemical Business is a supplier to chemical and industrial companies. Its other products include anhydrous ammonia, ammonium nitrate ammonia solution for agricultural applications, blended and regular nitric acid, mixed nitrating acids, and industrial grade AN and solutions for the mining industry. The Company sells hese agricultural products to farmers, ranchers, fertilizer dealers and distributors primarily in the ran! ch land and grain production markets in the United States. The Company�� Chemical Business establishes long-term relationships with wholesale agricultural distributors and retailers and also sells directly to agricultural end-users through its network of wholesale and retail distribution centers. The Company�� Chemical Business manufactures and sells industrial acids and other chemical products primarily to the polyurethane, paper, fibers, fuel additives, emission control, and electronics industries. Its Chemical Business is also a niche market supplier of industrial and high purity ammonia for many specialty applications, including the reduction of air emissions from power plants.
Climate Control Business
The Company�� Climate Control Business manufactures and sells a range of standard and custom designed geothermal and water source heat pumps and hydronic fan coils, as well as custom air handlers and modular chiller systems, including modular geothermal chillers and simultaneous heating and cooling modules. These products are for use in commercial/institutional and residential HVAC systems. Its products are installed in some of the commercial/institutional developments in the United States, including the Prudential Tower, Rockefeller Plaza, Trump Tower, Time Warner Center and many others. In addition, it has presence in the lodging sector with installations in numerous Hyatt, Marriott, Four Seasons, Starwood, Ritz Carlton and Hilton hotels, among others. Its Climate Control Business manufactures and distributes its products from seven facilities located in Oklahoma City, Oklahoma. The Company also provides geothermal heat pumps in residential and commercial/institutional applications. Its products are sold to the commercial/institutional markets, as well as single and multi-family residential new construction, renovation and replacements. The Company is a provider of hydronic fan coils targeting commercial and institutional markets. It manufactures its products in many! sizes an! d configurations, as required by the purchaser, to fit the space and capacity requirements of hotels, motels, schools, hospitals, apartment buildings, office buildings and other commercial/institutional or residential structures. The Climate Control Business sells its products primarily to mechanical contractors, original equipment manufacturers (OEMs) and distributors. Its Climate Control Business market includes commercial/institutional and residential new building construction, renovation of existing buildings and replacement of existing systems.
The Company competes with Agrium, CF Industries, Coffeyville Resources, Dyno Nobel, Koch, Potash Corporation, Yara International, Carrier, Trane, Nortek, McQuay, and Bosch.
Advisors' Opinion:- [By James E. Brumley]
With a market cap of only $893 million, it's not like LSB Industries, Inc. (NYSE:LXU) is the kind of company that garners a ton of attention. On the other hand, over the past several months, LXU has garnered far more attention than it likely wanted. The turbulence seems to be mostly behind it, however, and though the stock is now overbought thanks to the proverbial clearing of the dust, for long-haul investors, LSB Industries may be worth a closer look.
- [By Roberto Pedone]
LSB Industries (LXU) manufactures and sells geothermal and water source heat pumps and air handling products and chemical products. This stock closed up 4.6% at $33.72 in Friday's trading session.
Friday's Volume: 543,000
Three-Month Average Volume: 147,784
Volume % Change: 252%From a technical perspective, LXU ripped higher here right above some near-term support at $31.45 and back above its 50-day moving average of $32.51 with heavy upside volume. This stock also flirted with its 200-day moving average at $35.22, before closing just below that level at $33.72.
Traders should now look for long-biased trades in LXU as long as it's trending above its 50-day at $32.51 and then once it sustains a move or close above its 200-day at $35.22 to Friday's high of $36 with volume that's near or above 147,784 shares. If we get that move soon, then LXU will set up to re-test or possibly take out its next major overhead resistance levels at $40.37 to $42.79.
Top Chemical Stocks To Buy For 2015: Wacker Chemie AG (WCH)
Wacker Chemie AG is a Germany-based company engaged in chemical industry. The Company operates through four business segments: WACKER SILICONES, which produces silicone products, ranging from silanes through silicone fluids, emulsions, elastomers, sealants and resins to pyrogenic silicas; WACKER POLYMERS, which offers a range of polymeric binders and additives; WACKER POLYSILICON, which provides polysilicon, and WACKER BIOSOLUTIONS, which is the life science division of the Company, offers solutions and products for the food, pharmaceutical and agrochemical industries. The Company offers its products for a range of sectors, including consumer goods, food, pharmaceuticals, textiles and the solar, electrical/electronics, basic-chemical industries, medical technology, biotech and mechanical engineering, automotive and construction. The Company also supplies silicon wafers to the semiconductor industry. Advisors' Opinion:- [By Jonathan Morgan]
Wacker Chemie AG (WCH), the fourth-largest producer of polysilicon, jumped 9 percent to 56.22 euros, its largest increase since December.
Banks DeclineCommerzbank slumped 3.7 percent to 8.18 euros, for the biggest loss on the benchmark index.
Top Chemical Stocks To Buy For 2015: OCI Partners LP (OCIP)
OCI Partners LP, incorporated on February 07, 2013, owns and operates an integrated methanol and ammonia production facility that is strategically located on the Texas Gulf Coast near Beaumont. The Company is a methanol producer in the United States with an annual methanol production capacity of approximately 730,000 metric tons and an annual ammonia production capacity of approximately 265,000 metric tons, and it is in the early stages of a debottlenecking project that increases its annual methanol production capacity by 25% to approximately 912,500 metric tons and its annual ammonia production capacity by 15% to approximately 305,000 metric tons.
Both methanol and ammonia are global commodities that are essential building blocks for numerous end-use products. Methanol is a liquid petrochemical that is used in a variety of industrial and energy-related applications. Methanol is used in industrial applications to produce adhesives used in manufacturing wood products, such as plywood, particle board and laminates, resins to treat paper and plastic products, paint and varnish removers, solvents for the textile industry and polyester fibers for clothing and carpeting. Methanol is also used outside of the United States as a direct fuel for automobile engines, as a fuel blended with gasoline and as an octane booster in reformulated gasoline. In the United States, ammonia is primarily used as a feedstock to produce nitrogen fertilizers, such as urea and ammonium sulfate, and is also directly applied to soil as a fertilizer. In addition, ammonia is widely used in industrial applications, particularly in the Texas Gulf Coast market, including in the production of plastics, synthetic fibers, resins and numerous other chemical compounds.
Advisors' Opinion:- [By Robert Rapier]
OCI Partners (Nasdaq: OCIP) owns and operates OCI Beaumont, an integrated methanol and ammonia production facility on the Texas Gulf Coast. OCI Beaumont has a methanol production capacity of 730,000 metric tons (MT) per year and an ammonia production capacity of 265,000 MT per year. The facility is in the middle of a debottlenecking project that will increase its annual methanol production capacity by 25 percent and its annual ammonia production capacity by 15 percent.
- [By Robert Rapier]
Rounding out the bottom five were�OCI Partners�(NYSE: OCIP), a methanol and ammonia producer (-24 percent YTD),�Natural Resource Partners�(NYSE: NRP), another coal producer (-19 percent), and�Eagle Rock Energy Partners�(NASDAQ: EROC), an oil and gas production partnership (-17 percent).
Top Chemical Stocks To Buy For 2015: Sensient Technologies Corp (SXT)
Sensient Technologies Corporation, incorporated on December 07, 1882, is a global manufacturer and marketer of colors, flavors and fragrances. Sensient uses advanced technologies at facilities around the world to develop specialty food and beverage systems, cosmetic and pharmaceutical systems, inkjet and specialty inks and colors, and other specialty and chemicals. The Company�� customers include international manufacturers representing some of the Known brands. The Company operates in two segments: Flavors & Fragrances Group and the Color Group. The Asia Pacific and the China Groups are included in the Corporate & Other category, along with the Company�� corporate expenses. The Company's principal products include: flavors, flavor enhancers and bionutrients; fragrances and aroma chemicals; dehydrated vegetables and other food ingredients; natural and synthetic food and beverage colors; cosmetic and pharmaceutical colors and additives; and technical colors, inkjet colors and inks, and specialty dyes and pigments.
Flavors & Fragrances Group
The Company is a developer, manufacturer and supplier of flavor and fragrance systems for the food, beverage, pharmaceutical, personal care and household-products industries. The Company�� flavor formulations are used in consumer products. Under the unified brand names of Sensient Flavors, Sensient Dehydrated Flavors and Sensient Fragrances, the Company is a supplier to multinational companies. The Flavors & Fragrances Group produces flavor and fragrance products, which impart a taste, texture, aroma and/or other characteristics to a range of consumer and other products. It includes the Company�� dehydrated flavors business, which produces ingredients for food processors. The products are systems products, including flavor-delivery systems, and compounded and blended products. In addition, the Company is engaged in selected ingredient products, such as essential oils, natural and synthetic flavors, and aroma chemicals. The Company ! serves food and non-food industries. In food industries, markets include savory, beverage, dairy, confectionery and bakery flavors. In non-food industries, the Company supplies fragrance products to the personal and home-care markets and supplies flavor products to the pharmaceuticals market.
Operating through the Company�� Sensient Dehydrated Flavors business, the Company is produces dehydrated onion and garlic products in the United States. The Company is also producers and distributors of chili powder, paprika, chili pepper and dehydrated vegetables, such as parsley, celery and spinach. Domestically, the Company sells dehydrated products to food manufacturers for use as ingredients and also for repackaging under private labels for sale to the retail market and to the food service industry. In addition, Sensient Dehydrated Flavors is dehydrators of specialty vegetables in Europe. The Flavors & Fragrances Group operates through the Company's subsidiaries Sensient Flavors LLC and Sensient Dehydrated Flavors LLC. The Company�� principal manufacturing plants are located in California, Illinois, Indiana, Michigan, Wisconsin, Belgium, Canada, the People�� Republic of China, France, Germany, Italy, Mexico, the Netherlands, Spain and the United Kingdom.
Color Group
The Company is a developer, manufacturer and supplier of colors for businesses globally. The Company provides natural and synthetic color systems for use in foods, beverages and pharmaceuticals; colors and other ingredients for cosmetics and pharmaceuticals, and technical colors for industrial applications and digital imaging. The Company sells its synthetic and natural colors to domestic and international producers of beverages, bakery products, processed foods, confections, pet foods, cosmetics and pharmaceuticals. The Company also makes inkjet inks and other dyes and pigments used in a variety of non-food applications.
The Color Group operates through the Company's subsidiary Sensient Col! ors LLC. ! Its principal manufacturing plants are located in California, Missouri, New Jersey, Brazil, Canada, Mexico, France, Germany, Hungary, Italy, Switzerland and the United Kingdom. The Color Group operates under trade names of Sensient Food Colors (food and beverage colors); Sensient Pharmaceutical Coating Systems (pharmaceutical colors and coatings); Sensient Cosmetic Technologies (cosmetic colors and ingredients and systems). and Sensient Industrial Colors (including paper colors; industrial colors for plastics, leather, wood stains, antifreeze and other uses; inkjet colors and inks; specialty inks, and display imaging).
Asia Pacific and China Groups
The Asia Pacific Group and the China Group focus on marketing the Company�� diverse product line in the Pacific Rim under the Sensient name. Through these operations, the Company offers a range of products from its Flavors & Fragrances Group and Color Group, as well as products developed by regional technical teams to appeal to local preferences. Sales, marketing and technical functions are managed through the Asia Pacific Group's headquarters in Australia. Manufacturing operations are located in Australia, Japan, New Zealand and the Philippines. The Asia Pacific Group maintains offices for research and development, as well as sales, in India, Indonesia, Korea, Singapore and Thailand.
Advisors' Opinion:- [By Seth Jayson]
Calling all cash flows
When you are trying to buy the market's best stocks, it's worth checking up on your companies' free cash flow once a quarter or so, to see whether it bears any relationship to the net income in the headlines. That's what we do with this series. Today, we're checking in on Sensient Technologies (NYSE: SXT ) , whose recent revenue and earnings are plotted below.
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