materials sector ticker: xlb frank mclaughlin walter nabarrete
Post on 25-Dec-2015
215 Views
Preview:
TRANSCRIPT
Overview Includes companies that are involved
with the discovery and processing of raw materials
Ranges from chemical producers to forestry product manufacturers to companies that mine and refine metals
Largest holdings: Mansanto – 11.34%, DuPont – 9.11% and Dow Chemical – 8.41%
Current State of Sector Professional Viewpoint: Slightly Bullish
Good performer in 2012 & off to quick start in 2013
Relying heavy on chemical sector Currently outperforming S&P
Macroeconomic Threats Crude oil prices could rise Gold & mining companies not performing well Sector depends heavily on strong economy
Biggest Movers
Positive: Monsanto
+15.02% Dow Chemical
+13.90% Negative:
Newmont Mining Corp. -17.95%
Freeport-McMoran Copper & Gold -16.74%
(Past 3 Months)
Recent Headlines China Rallying Economic Strength
Great news for manufacturing & raw materials Monsanto Ends Patent Dispute with
Brazilian Farmers Dow Chemical Resigns from National
Association of Manufacturers (NAM) Opposes natural gas exports
Key Drivers Increase in World Population
More Food World Population 9.3 Billion by 2050
Health of Economy Increased Consumption
Available Land New Crop Growing Technology
Relevant Valuation Matrices P/E Ratio P/S Ratio
Materials Sector is Sensitive to the Business Cycle
Keep Debt and Profit Margins in Mind P/B Ratio
A lot of Capital
The Mosaic Company (MOS)
Date Presented: Oct. 16th
Recommendation: No Vote: N/A Price Then: $54.49 Price Now: $59.46 MOS announced it has plans to open a
$700 million Ammonia plant. Expanding its Potash operation.
Freeport-McMoRan Copper & Gold Inc. (FCX)
Date Presented: Nov. 1st Recommendation: No Vote: N/A Price Then: $40.50 Price Now: $35.02 Merger with Plains Exploration &
Production Company and McMoRan Exploration Co. on December 5, 2012.
Sigma-Aldrich Corporation Date Presented: Nov.27th Recommendation: No Vote: N/A Price Then: $72.20 Price Now: $76.91 Agreed to 50/50 joint venture with
Soulbrain Co. Ltd. On December 21, 2012.
(Ticker: SIAL)
Sources http://finviz.com/map.ashx?t=sec&st=w13 Finance.yahoo.com Reuters.com http://seekingalpha.com/article/1123161-macroeconomics-technicals-and-season
ality-all-pointing-to-higher-crude-prices?source=yahoo http://seekingalpha.com/article/1111171-is-manufacturing-getting-ready-to-save-
us-again?source=yahoo http://www.bizjournals.com/stlouis/blog/2013/01/monsanto-offers-compromise-to.
html
http://www.forbes.com/sites/jonentine/2013/01/24/odd-couple-will-dow-chemical-and-ed-markeys-opposition-to-natural-gas-exports-cripple-americas-energy-advantage/
https://www.fidelity.com/viewpoints/materials-sectors-2012 http://www.investopedia.com/articles/fundamental/03/032603.asp http://www.investopedia.com/terms/c/capitalintensive.asp#axzz2IqZOVAIT http://www.investopedia.com/articles/basics/10/profit-with-pe-
power.asp#axzz2IqZOVAIT http://finance.yahoo.com/news/sigma-aldrich-form-joint-venture-130000776.html
top related