MEOH

Methanex Corporation

Industrial/Transportation


Presented:04/18/2013
Price:$38.92
Cap:$0.00B
Current Price:$40.89
Cap:$2.76B

Presented

Date04/18/2013
Price$38.92
Market Cap$0.00B
Ent Value$0.00B
P/E Ratio11.95x
Book Value$19.35
Div Yield1.9%
Shares O/S94.70M
Ave Daily Vol370,000
Short IntN/A

Current

Price$40.89
Market Cap$2.76B
Methanex Corporation produces and supplies methanol in the Asia Pacific, North America, Europe, and South America. It also purchases methanol produced by others under methanol offtake contracts and on the spot market. The company was founded in 1968 and is headquartered in Vancouver, Canada.

Highlights

The presenter is bullish on the outlook for Methanex, and has built a position in its shares. The company is listed in the US and Canada, and between MEOH and MX CN it is reasonably liquid, but the company has repurchased nearly 100 million shares (reducing its share count from ~190 million to ~95 million shares outstanding) over the past two years so there is some liquidity risk to the position. However, he sees a huge revenue opportunity for the company over the next two years, and the potential for them to more than double EBITDA, and generate upwards of 80% of the current market cap in cash (by 2017) if his thesis plays out.

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Idea Discussion

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