MEOH / MX CN

Methanex Corporation

Industrial/Transportation


Presented:01/09/2015
Price:$47.25
Cap:$4.43B
Current Price:$40.89
Cap:$2.76B

Presented

Date01/09/2015
Price$47.25
Market Cap$4.43B
Ent Value$5.34B
P/E Ratio9.77x
Book Value$18.71
Div Yield2.1%
Shares O/S93.69M
Ave Daily Vol1,160,000
Short IntN/A

Current

Price$40.89
Market Cap$2.76B
Methanex Corporation produces, supplies, and sells methanol to petrochemical producers and distributors in the Asia Pacific, North America, Europe, and South America. It also purchases and re-sells methanol produced by others on the spot market. The methanol is a liquid commodity chemical that is used in the production of traditional chemical derivatives, such as formaldehyde, acetic acid, and various other chemicals. The methanol is also used in various energy-related applications, such as blending into gasoline; and as a feedstock in the production of dimethyl ether and biodiesel, and methanol-to-olefins, as well as to produce methyl tertiary-butyl ether, a gasoline component. The company owns or manages a fleet of 18 ocean-going vessels to ship methanol, as well as lease or own in-region storage and terminal facilities. Methanex Corporation was founded in 1968 and is headquartered in Vancouver, Canada.

Publicly traded companies mentioned herein: Methanex Corporation (MEOH / MX CN)

Highlights

The presenter believes shares of Methanex (MEOH) are “really cheap” at current levels (~$47), and he is long the stock based on cash flow and capacity estimates that suggest a more fair value is in the low $90s. He quickly reviewed MEOH’s status as the largest merchant producer of methanol in the world (with ~15% global share), and explained how the company operates via long term contracts with gas producers and has been growing above GDP. He further explained his bullish view as follows:

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Idea Discussion

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