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Methanex (MEOH) Declares New Share Repurchase Program
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Methanex Corporation (MEOH - Free Report) declared that its board of directors has approved a Normal Course Issuer Bid (NCIB). Per the terms of the program, the company will purchase for cancellation up to 4,492,141 common shares, representing roughly 5% of 89,842,838 shares issued and outstanding. Purchases under the program will begin on Mar 13, 2017 at the then current market price of shares and will continue till Mar 12, 2018.
Methanex has entered into an automatic securities purchase plan with its broker in connection with the purchases to be made under the NCIB program. Per the terms of the plan, daily repurchases will not exceed 25% of the company's average daily trading volume for the four week period preceding the date of purchase.
Methanex has outperformed the Zacks categorized Chemicals-Diversified industry over the past three months. The company’s shares have gained around 9.3% over this period compared with roughly 4.5% gain witnessed by the industry.
Methanex has a track record of returning excess cash to shareholders. The company is benefiting from high production and sales volumes and remains well positioned with strong liquidity and cash generation ability.
Moreover, demand fundamentals for methanol remain healthy despite the global economic weakness. Demand has been driven by both traditional derivatives and energy-related applications in Asia, particularly in China. Methanex is seeing healthy global demand for methanol and estimates an around 11% year over year growth in total methanol demand in fourth-quarter 2016. The company should also gain from its Louisiana project, which is expected to create significant value for shareholders and meaningfully contribute to cash generation.
However, Methanex remains exposed to a volatile methanol pricing environment. Moreover, it continues to face headwinds due to curtailment of gas supply. Production outages are also affecting its operations.
Methanex currently carries a Zacks Rank #3 (Hold).
Key Picks
Better-ranked companies in the chemical space include Univar Inc. , The Chemours Company (CC - Free Report) and Albermale Corporation (ALB - Free Report) .
Chemours has expected long-term growth of 15.5% and carries a Zacks Rank #2 (Buy).
Albemarle has expected long-term growth of 10.3% and has a Zacks Rank #2.
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Methanex (MEOH) Declares New Share Repurchase Program
Methanex Corporation (MEOH - Free Report) declared that its board of directors has approved a Normal Course Issuer Bid (NCIB). Per the terms of the program, the company will purchase for cancellation up to 4,492,141 common shares, representing roughly 5% of 89,842,838 shares issued and outstanding. Purchases under the program will begin on Mar 13, 2017 at the then current market price of shares and will continue till Mar 12, 2018.
Methanex has entered into an automatic securities purchase plan with its broker in connection with the purchases to be made under the NCIB program. Per the terms of the plan, daily repurchases will not exceed 25% of the company's average daily trading volume for the four week period preceding the date of purchase.
Methanex has outperformed the Zacks categorized Chemicals-Diversified industry over the past three months. The company’s shares have gained around 9.3% over this period compared with roughly 4.5% gain witnessed by the industry.
Methanex has a track record of returning excess cash to shareholders. The company is benefiting from high production and sales volumes and remains well positioned with strong liquidity and cash generation ability.
Moreover, demand fundamentals for methanol remain healthy despite the global economic weakness. Demand has been driven by both traditional derivatives and energy-related applications in Asia, particularly in China. Methanex is seeing healthy global demand for methanol and estimates an around 11% year over year growth in total methanol demand in fourth-quarter 2016. The company should also gain from its Louisiana project, which is expected to create significant value for shareholders and meaningfully contribute to cash generation.
However, Methanex remains exposed to a volatile methanol pricing environment. Moreover, it continues to face headwinds due to curtailment of gas supply. Production outages are also affecting its operations.
Methanex Corporation Price and Consensus
Methanex Corporation Price and Consensus | Methanex Corporation Quote
Methanex currently carries a Zacks Rank #3 (Hold).
Key Picks
Better-ranked companies in the chemical space include Univar Inc. , The Chemours Company (CC - Free Report) and Albermale Corporation (ALB - Free Report) .
Univar has expected long-term growth of 9.4% and sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Chemours has expected long-term growth of 15.5% and carries a Zacks Rank #2 (Buy).
Albemarle has expected long-term growth of 10.3% and has a Zacks Rank #2.
8 Stocks with Huge Profit Potential
Just released: Driverless Cars: Your Roadmap to Mega-Profits Today. In this latest Special Report, Zacks’ Aggressive Growth Strategist Brian Bolan explores a full-blown technological breakthrough in the making – autonomous cars. He also spotlights 8 stocks with tremendous gain potential to feed off this phenomenon. Click to see the stocks right now >>