Sunday, February 8, 2015

Top 10 Chemical Companies To Own In Right Now

Updated to describe shares outstanding, instead of beneficial ownership.

NEW YORK (TheStreet) -- Martin E. Franklin, chairman of Jarden  (JAH), and a team of investors including Nicolas Berggruen of Berggruen Holdings and Bill Ackman's Pershing Square Capital Management are going from cheeseburgers to specialty chemicals.

On Thursday, Franklin brought the new deal, Platform Specialty Products, to the New York Stock Exchange after acquiring specialty chemical manufacturer MacDermid for $1.8 billion in October of 2013. The structure of Platform Specialty Products' listing on the NYSE is similar to a deal that three struck in April 2012, which returned Burger King Worldwide (BKW) to public stock markets.

In Burger King's listing, Justice Holdings, a London-listed Ackman and Berggruen-backed acquisition vehicle bought a large stake in the hamburger chain from private equity fund 3G Capital for $1.4 billion and used the deal return it to the NYSE. Justice Holdings was dissolved and Ackman's Pershing Square and Berggruen became large minority investors in Burger King, to go with 3G Capital's majority stake.

Top 5 Medical Companies To Invest In Right Now: NewMarket Corp (NEU)

NewMarket Corporation (NewMarket), incorporated in 2004, is a holding company, which is the parent company of Afton Chemical Corporation (Afton), Ethyl Corporation (Ethyl), NewMarket Services Corporation (NewMarket Services), and NewMarket Development Corporation (NewMarket Development). Each of the Company�� subsidiaries manages its own assets and liabilities. Afton encompasses the petroleum additives business, while Ethyl represents the sale and distribution of tetraethyl lead (TEL) in North America and certain petroleum additives manufacturing operations. NewMarket Development manages the property, which it owns in Richmond, Virginia. NewMarket Services provides administrative services to NewMarket, Afton, Ethyl, and NewMarket Development. NewMarket Services departmental expenses and other expenses are billed to NewMarket and each subsidiary pursuant to services agreements between the companies.

As a specialty chemicals company, Afton develops, manufactures, and blends formulated fuel and lubricant additive packages, and markets and sells these products globally. Afton is a lubricant and fuel additives companies globally. Lubricant and fuel additives are products for maintenance and reliable operation of all vehicles and machinery. Ethyl provides contract manufacturing services to Afton and to third parties and is one of the marketers of TEL in North America. NewMarket Development manages the property, which it owns on a site in Richmond, Virginia consisting of approximately 64 acres.

Petroleum Additives

Petroleum additives are used in lubricating oils and fuels to enhance their performance in machinery, vehicles, and other equipment. It manufactures chemical components, which are selected to perform specific functions and combine those chemicals with other components to form additive packages for use in specified end-user applications. The petroleum additives market is an international marketplace, with customers ranging from oil companies and refineries t! o original equipment manufacturers (OEMs) and other specialty chemical companies. Lubricant additives are ingredients for lubricating oils. Lubricant additives are used in a range of vehicle and industrial applications, including engine oils, transmission fluids, gear oils, hydraulic oils, turbine oils, and in other application where metal-to-metal moving parts are utilized. Lubricant additives are organic and synthetic chemical components, which enhance wear protection, prevent deposits, and protect against the hostile operating environment of an engine, transmission, axle, hydraulic pump, or industrial machine.

Lubricants are used in every piece of operating machinery from heavy industrial equipment to vehicles. Lubricants provide a layer of protection between moving mechanical parts. Lubricants serve the functions, such as friction reduction, heat removal and containment of contaminants.

The Company offers a range of lubricant additive products, each of which is composed of component chemicals specially selected to perform desired functions. It manufactures the chemical components and blends these components to create formulated additives packages. Purchasers of lubricant additives tend to be oil companies, distributors, refineries, and compounders/blenders. The engine oils market�� primary customers include consumers, service dealers, and OEMs. Afton offers products, which enhances the performance of mineral, part-synthetic, and fully-synthetic engine oils.

The driveline additives submarket is consisted of additives designed for products, such as transmission fluids, gear oils, and off-road fluids. Transmission fluids serve as the power transmission and heat transfer medium in the area of the transmission. Gear oil additives lubricate gears, bearings, clutches, and bands in the gear-box and are used in vehicles, off-highway, hydraulic, and marine equipment. Other products in this area include hydraulic transmission fluids, universal tractor fluids, power ste! ering flu! ids, shock absorber fluids, gear oils and lubricants for machinery. These additives are sold to oil companies and often sold to vehicle OEMs for new vehicles. End-products are also sold to service dealers for aftermarket servicing (service-fill), as well as retailers and distributors.

The industrial additives submarket is consisted of additives designed for products for industrial applications, such as hydraulic fluids, grease, industrial gear fluids, industrial specialty applications, and metalworking additives. This submarket also shares in the 30% of the market not covered by engine oils. These products must conform to industry specifications, OEM requirements and/or application and operating environment demands. Industrial additives are sold to oil companies, service dealers for after-market servicing, and distributors.

The types of fuel additives the Company offers include gasoline performance additives, which clean and maintain fuel delivery systems, including fuel injectors and intake valves, in gasoline engine; diesel fuel performance additives, which perform similar cleaning functions in diesel engines; cetane improvers, which increase the cetane number in diesel fuel by reducing the delay between injection and ignition; stabilizers, which reduce or eliminate oxidation in fuel; corrosion inhibitors, which minimize the corrosive effects of combustion by-products and prevent rust; lubricity additives, which restore lubricating properties lost in the refining process; cold flow improvers, which improve the pumping and flow of diesel in cold temperatures, and octane enhancers. It offers a range of fuel additives globally and sells its products to fuel marketers and refiners, as well as independent terminals and other fuel blenders.

Real Estate Development

The real estate development segment represents the operations of Foundry Park I, LLC (Foundry Park I). The Company is exploring various development opportunities for other portions of the proper! ty it own! s, as the demand warrants.

All Other

The All other category includes the continuing operations of the TEL business (primarily sales of TEL in North America), as well as contract manufacturing performed by Ethyl. Ethyl manufacturing facilities include its Houston, Texas and Sarnia, Ontario, Canada plants. The Houston plant is engaged in petroleum additives manufacturing and produces both lubricant additives and fuel additives. The Sarnia plant is engaged in petroleum additives manufacturing and produces fuel additives. The All other category financial results include a service fee charged by Ethyl for its production services to Afton. Its remaining manufacturing facilities are part of Afton and produce both lubricant additives and fuel additives.

The Company competes with Berkshire Hathaway Inc., ExxonMobil Chemical, Royal Dutch Shell plc, Chevron Oronite Company LLC, BASF AG, Chevron Oronite Company LLC, The Lubrizol Corporation, Innospec, Inc., Eurenco and EPC - U.K.

Advisors' Opinion:
  • [By John Udovich]

    The biotech sector has been pretty exciting this year�with small cap biotech stocks Prana Biotechnology Limited (NASDAQ: PRAN) and TNI BioTech (OTCMKTS: TNIB) having recently produced noteworthy news for investors�while Acceleron Pharma, Inc (NASDAQ: XLRN), Ophthotech (NASDAQ: OPHT) and BIND Therapeutics (NASDAQ: BIND) have just�set term sheets for their upcoming IPOs. Just consider all of the following recent news:

    Surge in Biotech IPOs. Unquote.com has noted�a surge in biotech IPOs this year as there have been�almost 30 biotech IPOs since January - marking a 13-year high and sparking some concerns about a bubble. More specifically and according to the National Venture Capital Association (NVCA), there was just one venture capital-backed biotech IPO in the US in the first quarter of this year, but this was followed by a massive increase of 20 in�the second quarter and a�further six since July. There has also been a small uptick in�venture capital-backed European biotech companies going public (four) with�a listing on the Nasdaq appearing to be the most popular or rather the safest option. � New IPO Term Sheets. This month, a couple of small cap biotech companies announced their terms for upcoming IPOs, including 1)�Acceleron Pharma, Inc, a clinical stage biotech developing protein therapeutics for cancer and rare diseases, plans to raise $65 million by offering 4.7 million shares at a price range of $13 to $15; 2) Ophthotech, a clinical-stage biotech developing therapeutics for eye diseases, plans to raise $100 million by offering 5.7 million shares at a price range of $16 to $19; and 3) BIND Therapeutics, a clinical-stage biotech developing a platform of targeted and programmable therapeutics, plans to raise $71 million by offering 4.7 million shares at a price range of $14 to $16. Biotechs Invest More on R&D. The 2013 BDO Biotech Briefing examined the most recent 10-K SEC filings of publicly traded companies listed on the Nasdaq Biotechnolog

Top 10 Chemical Companies To Own In Right Now: E.I. du Pont de Nemours and Company(DD)

E. I. du Pont de Nemours and Company operates as a science and technology company worldwide. It operates in seven segments: Agriculture & Nutrition, Electronics & Communications, Performance Chemicals, Performance Coatings, Performance Materials, Safety & Protection, and Pharmaceuticals. The Agriculture & Nutrition segment provides hybrid seed corn and soybean seed, herbicides, fungicides, insecticides, value enhanced grains, and soy protein under the Pioneer brand name. The Electronics & Communications segment supplies materials and systems for photovoltaic products, consumer electronics, displays, and advanced printing. The Performance Chemicals segment offers fluorochemicals, fluoropolymers, specialty and industrial chemicals, and white pigments for various markets, such as plastics and coatings, textiles, mining, pulp and paper, water treatment, and healthcare. The Performance Coatings segment supplies high performance liquid and powder coatings for motor vehicle origi nal equipment manufacturers (OEM); the motor vehicle after-market; and general industrial applications, such as such as coatings for heavy equipment, pipes and appliances, and electrical insulation. The Performance Materials segment provides polymers, elastomers, films, parts, and systems and solutions for the automotive OEM and associated after-market industries, as well as electrical, electronics, packaging, construction, oil, photovoltaics, aerospace, chemical processing, and consumer durable goods. The Safety & Protection segment primarily offers nonwovens, aramids, and solid surfaces for the construction, transportation, communications, industrial chemicals, oil and gas, electric utilities, automotive, manufacturing, defense, homeland security, and safety consulting industries. The Pharmaceuticals segment represents its interest in the collaboration relating to Cozaar/Hyzaar antihypertensive drugs. The company was founded in 1802 and is headquartered in Wilmington, Dela ware.

Advisors' Opinion:
  • [By Dan Caplinger]

    On Tuesday, DuPont (NYSE: DD  ) will release its latest quarterly results. The key to making smart investment decisions on stocks reporting earnings is to anticipate how they'll do before they announce results, leaving you fully prepared to respond quickly to whatever surprises inevitably arise. That way, you'll be less likely to have an uninformed, knee-jerk reaction that turns out to be exactly the wrong move.

Top 10 Chemical Companies To Own In Right Now: ICL Israel Chemicals Ltd (ICL)

ICL Israel Chemicals Ltd (ICL) is an Israel-based company, engaged in the fertilizer and specialty chemical sectors. The company operates in three segments: Fertilizers, Industrial Products, and Performance Products. The Fertilizers segment is engaged in the production of standard, granular, fine red and white potash from three sources, as well as in the production of phosphates, such as phosphate rock, phosphoric acid, fertilizers and animal feed addictives. The Industrial Products segment produces flame retardants, such as brominates and organ phosphorus; elemental bromine, and other chemicals. In addition the Performance Products segment produces specialty phosphates, such as technical, food grade and electronic grade phosphoric acid, phosphate salts, food additives and wildfire safety products, as well as alumina and other chemicals. Advisors' Opinion:
  • [By Gwen Ackerman]

    Israel Chemicals Ltd. (ICL), the fourth-largest potash producer in the world by sales, is weighing on the Tel Aviv benchmark stock index on concern the government will exact higher royalties amid a global oversupply.

  • [By Claudia Maedler]

    In Israel, the TA-25 Index (TA-25) gained 1.9 percent at the close in Tel Aviv as Israel Corp. jumped 9 percent, the most since July 2009, to 1,755 shekels. The shares soared along with those of its Israel Chemicals Ltd. (ICL) unit, which advanced 6.4 percent on speculation that a possible change in ownership of Russian potash producer OAO Uralkali could help stabilize prices of the crop nutrient.

Top 10 Chemical Companies To Own In Right Now: Olin Corp (OLN)

Olin Corporation, incorporated on August 13, 1892, is a manufacturer focused in three business segments: Chlor Alkali Products, Chemical Distribution and Winchester. Chlor Alkali Products manufactures and sells chlorine and caustic soda, hydrochloric acid, hydrogen, bleach products and potassium hydroxide. Chemical Distribution manufactures bleach products and distributes caustic soda, bleach products, potassium hydroxide and hydrochloric acid. Winchester products include sporting ammunition, reloading components, small caliber military ammunition and components, and industrial cartridges. On August 22, 2012, the Company acquired K. A. Steel Chemicals Inc. (KA Steel). KA Steel is a distributor of caustic soda in North America and manufactures and sells bleach in the Midwest.

The Company's subsidiary, Olin Canada ULC, operates one chlor alkali facility in Becancour, Quebec, which sells chlor alkali-related products within Canada and to the United States and also sells and distributes ammunition within Canada. The Company's subsidiary, Winchester Australia Limited, loads and packs sporting and industrial ammunition in Australia.

Chlor Alkali Products

The Company is engaged in the United States chlor alkali industry. Chlorine, caustic soda and hydrogen are co-produced commercially by the electrolysis of salt. These co-products are produced simultaneously, and in a fixed ratio of one ton of chlorine to 1.1 tons of caustic soda and 0.03 tons of hydrogen. The Company also manufactures and sells other chlor alkali-related products. These products include chemically processed salt, hydrochloric acid, sodium hypochlorite (bleach), hydrogen, and potassium hydroxide. The Company refers to these other chlor alkali-related products as co-products. During the year ended December 31, 2012, sales of co-products represented approximately 32% of Chlor Alkali Products' sales.

The Company's chlorine/caustic soda products are used in pulp and paper processing, chemical! manufacturing, water purification, manufacture of vinyl chloride, bleach, swimming pool chemicals and urethane chemicals. Its sodium hypochlorite are used in household cleaners, laundry bleaching, swimming pool sanitizers, semiconductors, water treatment, textiles, pulp and paper, and food processing. Its hydrochloric acid are used in steel, oil and gas, plastics, organic chemical synthesis, water and wastewater treatment, brine treatment, artificial sweeteners, pharmaceuticals, food processing, and ore and mineral processing. Its potassium hydroxide is used in fertilizer manufacturing, soaps, detergents and cleaners, battery manufacturing, food processing chemicals and deicers. Its hydrogen is used in fuel source, hydrogen peroxide and hydrochloric acid.

The Company competes with Dow Chemical Company and the Occidental Chemical Corporation.

Chemical Distribution

The Company's KA Steel comprises the Chemical Distribution segment. KA Steel is a distributor of caustic soda in North America and manufacturers and sells bleach in the Midwest. KA Steel also sells small quantities of potassium hydroxide and maintains infrastructure to be, a distributor of hydrochloric acid.

The Company competes with Univar Inc. and Brenntag AG.

Winchester

Winchester is a developer and manufacturer of small caliber ammunition for sale to domestic and international retailers (commercial customers), law enforcement agencies and domestic and international militaries. The Company's Winchester product line includes gauges and calibers of shotgun shells, rimfire and centerfire ammunition for pistols and rifles, reloading components and industrial cartridges. Its Winchester sporting ammunition, which include shot-shells, small caliber centerfire and rimfire ammunition, are used by hunters and recreational shooters, and law enforcement agencies. Its small caliber military ammunition are used in infantry and mounted weapons. Its industrial products, which i! nclude ei! ght gauge loads & powder-actuated tool loads, are used in maintenance applications in power and concrete industries and powder-actuated tools in construction industry.

The Company competes with Alliant Techsystems Inc. and Remington Arms Company, Inc.

Advisors' Opinion:
  • [By James Brumley]

    Those seeking to capitalize on the now-waning firearm craze may be better off looking at ammunition makers like Olin Corporation (OLN). It got its own mania-driven sales bump in Q3, as owners of newly-purchased guns stocked up on bullets. But, at least there’s relatively stable recurring revenue in the ammo business, assuming all these recent gun buyers make occasional visits to the shooting range.

  • [By Steve Symington]

    Meanwhile, Winchester ammunition manufacturer Olin (NYSE: OLN  ) has benefited from a relentless upward trend in ammunition purchases, which it says began the Saturday before Election Day. As of the company's most recent quarterly results, Olin management bluntly stated that the demand has only been "limited by product availability."�

  • [By Johanna Bennett]

    Dow isn�� the only chemical play gaining on the news. �Axiall (AXLL) rose 9.3% to $49.58 in Monday market action. Olin (OLN) rose 6.1% to $26.36. And Westlake Chemical (WLK) rose 2.2% to $115.10.

  • [By Victor Selva]

    The company has a current ratio of 17.8% which is higher than the industry mean of 6.55%. Also, it's higher than the one registered by Akzo Nobel NV (AKZOY), Cabot Corporation (CBT) and Olin Corporation (OLN). For investors looking for a higher ROE, PPG Industries Inc. (PPG) could be the option.

Top 10 Chemical Companies To Own In Right Now: Israel Corporation Ltd (ILCO)

Israel Corporation Ltd is an Israel-based holding company. The Company operates mainly through its subsidiaries: Israel Chemicals Ltd, operating in the areas of fertilizers and special chemicals; Oil Refineries Ltd, engaged in crude oil refining, production of fuel products, raw materials for the petrochemical industry and materials for the plastics industry; ZIM Integrated Shipping Services Ltd, operating in the shipping lines��industry through use of tankers, offering delegation, Customs clearance, overland transport, distribution, warehousing, insurance, container terminals, marine terminal operation services and logistic services; I.C. Power Ltd, engaged in the production and sale of electricity, as well as in activities intended for the construction and operation of power stations, and Other subsidiaries, engaged in advanced technology, vehicles, infrastructures for electric-powered vehicles, and clean energy. Advisors' Opinion:
  • [By Claudia Maedler]

    The DFM General Index (DFMGI) climbed 4.8 percent to 2,659.93, the highest close since Aug. 26. The measure had plunged as much as 15 percent since reaching a five-year high on Aug. 25 on concern the U.S. would launch a military strike against Syria. Emaar Properties PJSC (EMAAR), the stock with the biggest weighting on the index, jumped 4.7 percent, while Deyaar Development (DEYAAR) PJSC surged 9.1 percent. Israel Corp. (ILCO) led gains in Tel Aviv.

Top 10 Chemical Companies To Own In Right Now: Ferchem Egypt Fertilizers and Chemicals (FERC)

Ferchem Egypt Fertilizers and Chemicals is an Egypt-based company engaged in the establishment and operation of a factory for mixing and packaging of chemical fertilizers, pesticides, insecticides and hormones, as well as other agricultural related activities. Advisors' Opinion:
  • [By Jim Jubak]

    Cheniere also has received other good news on Corpus Christi. To get a permit for the unrestricted export of liquefied natural gas, a facility has to win approval from the US Department of Energy (DOE) and the Federal Energy Regulatory Commission (FERC). DOE has accelerated its permit process, but FERC approval has become a major bottleneck, since the commission needs to coordinate studies from several other agencies before it can complete its review. Cheniere has recently received a scheduling notice from FERC, which looks to put that facility on track for a permit ruling by the end of 2014 or early 2015.

Top 10 Chemical Companies To Own In Right Now: American Vanguard Corp (AVD)

American Vanguard Corporation, incorporated on January 2, 1969, operates as a holding company. The Company is primarily a chemical manufacturer that develops and markets products for agricultural and commercial uses. The Company manufactures and formulates chemicals for crops, human and animal protection. The Company conducts its business through its subsidiaries, AMVAC Chemical Corporation (AMVAC), GemChem, Inc. (GemChem), 2110 Davie Corporation (DAVIE), Quimica Amvac de Mexico S.A. de C.V. (AMVAC M), AMVAC de Costa Rica Sociedad Anonima (AMVAC CR), AMVAC Switzerland GmbH (AMVAC S), AMVAC do Brasil Representacoes Ltda (AMVAC B), AMVAC Chemical UK Ltd. (AMVAC UK), AMVAC CV (AMVAC CV), AMVAC Netherlands BV (AMVAC BV), and Envance Technologies, LLC (Envance). In July 2012, the Company completed the restructuring of the International Sales & Marketing function of its principal operating subsidiary, AMVAC Chemical Corporation. On November 30, 2012, AMVAC and TyraTech, Inc. formed Envance Technologies, LLC, in which the Company owns 60% of the equity interest. In July 2012, the Company formed AMVAC CV and AMVAC BV.

AMVAC is a chemical manufacturer that develops and markets products for agricultural and commercial uses. It manufactures and formulates chemicals for crops, human and animal health protection. These chemicals, which include insecticides, fungicides, herbicides, molluscicides, growth regulators, and soil fumigants, are marketed in liquid, powder, and granular forms. AMVAC owns and/or operates the Company�� domestic manufacturing facilities and is also the parent company for all its foreign companies. DAVIE owns real estate for corporate use.

GemChem is a national chemical distributor. GemChem, in addition to purchasing key raw materials for the Company, also sells into the pharmaceutical, cosmetic and nutritional markets. GemChem is a wholly owned subsidiary of AVD.

Advisors' Opinion:
  • [By Travis Hoium]

    What: Shares of specialty chemical maker American Vanguard (NYSE: AVD  ) jumped 10% today after the company released earnings.

    So what: First-quarter revenue jumped 39% to $121.5 million and adjusted earnings per share nearly doubled to $0.59. Analysts only expected $115.4 million in revenue and earnings of $0.46 per share so the company easily beat on both the top and bottom line. �

  • [By Eric Volkman]

    Investors in American Vanguard (NYSE: AVD  ) will be receiving dividends twice as frequently as in the past. The company announced Monday that is has launched quarterly distributions with a $0.05-per-share payout, to be paid July 19 to shareholders of record as of July 5.

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