Top Chemical Companies To Own In Right Now

The Department of Defense issued 14 separate contract awards to defense contractors Friday. Of these, the largest was "an indefinite-delivery/indefinite-quantity, multiple award contract with provisions to issue cost-plus-award-fee or firm-fixed-price task orders for global contingency construction projects worldwide." (Say that three times fast)

This umbrella contract authorizes four separate contractors -- privately held CH2M Hill Constructors and Environmental Chemical Corp, and publicly traded KBR (NYSE: KBR  ) and URS (NYSE: URS  ) -- to bid for individual task orders under it. In total, across the contract's one-year "base period" and the up to four subsequent one-year optional extensions, this contract is estimated to have a maximum dollar value of $800 million. It is not to exceed 60 months in duration and so should expire in June 2018.

Top Chemical Companies To Own In Right Now: Ashland Inc. (ASH)

Ashland Inc. operates as a specialty chemicals company in the United States and internationally. Its Ashland Aqualon Functional Ingredients segment produces cellulose ethers; and specialty additives and functional ingredients. Its products offer functionality, such as thickening and rheology control; water retention; adhesive strength; binding power; film formation; protective colloid, suspending, and emulsifying action; foam control; and pH stability. The company?s Ashland Hercules Water Technologies segment manufactures papermaking chemicals and supplies specialty chemicals. It offers sizing agents, wet/dry strength additives, and crepe and release additives for tissue manufacturing; and deposit control agents, defoamers, biocides, and other process additives. This segment also provides specialized chemicals and consulting services for the utility water treatment; and performance-based feed and control systems; and monitoring devices and remote system surveillance. Its A shland Performance Materials segment manufactures and supplies specialty chemicals and customized services to the building and construction, transportation, metal casting, packaging and converting, and marine markets. It also offers unsaturated polyester and vinyl ester resins, and gelcoats; adhesives and specialty resins; and metal casting consumables and design services. The company?s Ashland Consumer Markets segment produces and markets packaged automotive lubricants, chemicals, appearance products, antifreeze, and filters to the private passenger car, light truck, and heavy duty markets. It also operates a quick-lube franchise under the name of Valvoline Instant Oil Change. The company was founded in 1918 and is headquartered in Covington, Kentucky.

Top Chemical Companies To Own In Right Now: PFB Corporation (PFBOF)

PFB Corporation (PFB) is a Canada-based company. The Company, together with its subsidiaries, is engaged in the manufacturing of insulating building products made from expanded polystyrene (EPS) materials and marketing these products in North America. Its main brands include PlastiSpan EPS Product Solutions; Advantage ICFS, Insulspan SIPS, Riverbend Timber Framing and Precision Craft. Expandable polystyrene resin is manufactured at PFB�� polymer plant located in Crossfield, Alberta, for use in downstream EPS manufacturing operations. Plasti-Fab EPS Product Solutions supply the EPS foam core material used to manufacture Insulspan SIPS. Riverbend Timber Framing structures are typically sold with an accompanying Insulspan SIPS enclosure package. Advantage ICF Systems are insulating concrete forming systems that are employed to build insulated foundations and walls from concrete in both residential and commercial markets. On February 1, 2011, the Company acquired Precision Craft Group. Advisors' Opinion:

• [By Tom Konrad]

  PFB is a leading North American manufacturer of expanded polystyrene (EPS, aka "Styrofoam") building products such as insulated concrete forms and structural insulated panels.  The stock trades infrequently, and did not trade at all on December 28th, so I will be using the midpoint of the bid and ask for the purpose of measuring its return over the coming year.  At $5.53, PFB pays a 5.75% annual yield.
  
  The stock price has fallen significantly after the planned purchase of NOVA Chemicals' Performance Styrenics business as a move towards vertical integration with the acquisition of the EPS manufacturer.  This deal fell though, and many investors sold the stock, driving it down from the mid $7 range to the mid $5 range where it is today.   Already a good value, PFB stands to gain from continued recovery in the housing market or any increase in investor recognition.  However, since the stock is so illiquid, larger investors will probably want to substitute one of my upcoming alternative picks for PFB, while small investors should limit themselves to good-til-cancelled limit orders to avoid paying over the odds for their shares.

Top Machinery Companies To Invest In 2014: Linde AG (LING.DE)

Linde AG is a German company engaged in the gases and engineering sector. It operates two divisions: Gases and Engineering, as core divisions, as well as Gist. The Gases Division includes Healthcare, producing medical gases; and Tonnage, as its two global business units; as well as the two business areas Merchant and Packaged Gases, offering liquefied and cylinder gases, and Electronics. The Company�� products are used in the energy sector, for steel production, chemical processing, environmental protection and welding, as well as in food processing, glass production and electronics. The Engineering division offers planning, project development and construction of turnkey industrial plants used in fields, such as petrochemical and chemical industries, in refineries and fertilizer plants, to recover air gases, to produce hydrogen and synthesis gases, to treat natural gas, and in the pharmaceutical industry. As of August 13, 2012, the Company acquired Lincare Holdings Inc.

Top Chemical Companies To Own In Right Now: LyondellBasell Industries NV(LYB)

LyondellBasell Industries N.V. manufacturers and sells chemicals and polymers, refines crude oil, produces gasoline blending components, and develops and licenses technologies for production of polymers. The company?s Olefins and Polyolefins segment offers olefins, including ethylene, propylene, and butadiene; aromatics, such as benzene and toluene; polyolefins, which comprise polypropylene (PP), high-density polyethylene, low-density polyethylene, and linear low-density polyethylene; specialty polyolefins, including catalloy process resins, PP compounds, and polybutene-1 resins; and ethylene derivatives, which comprise ethanol. Its Intermediates and Derivatives segment provides propylene oxide (PO); PO co-products, including styrene monomers and TBA derivative isobutylene; PO derivatives, such as propylene glycol, propylene glycol ethers, and butanediol; acetyls, such as methanol, acetic acid, and vinyl acetate monomers; ethylene derivatives, which comprise ethylene oxide , ethylene glycol, and ethylene glycol ethers; and flavor and fragrance chemicals. The company?s Refining and Oxyfuels segment offers gasoline and components, ultra low sulfur diesel, jet fuel, and lube oils; diesel, feedstock, fuel oil, gasoline, and bitumen; and gasoline blending components, including methyl tertiary butyl ether, ethyl tertiary butyl ether, and alkylate. Its Technology segment develops and licenses polyolefin and other process technologies. This segment also develops, manufactures, and sells polyolefin catalysts, as well as provides technology services, which comprise safety reviews, training and start-up assistance, engineering services for process and product improvements, and manufacturing troubleshooting. LyondellBasell Industries N.V. has operations in the Americas, Europe, Asia, and internationally. The company was founded in 2005 and is based in Rotterdam, Netherlands. LyondellBasell Industries N.V. is a subsidiary of Prochemie GmbH.

Advisors' Opinion:

• [By ETF Authority]

  LyondellBasell (LYB) manufactures and sells chemicals and polymers, refines crude oil, produces gasoline blending components, and develops and licenses technologies for the production of polymers. It has been given a buy rating by UBS Investment Research. On December 10, 2010, LyondellBasell announced the deve lopment of a new Asian Propylene Oxide project with its joint venture partner. Dividends of $70-90 million per year are expected from this project. UBS' global operating rate forecast, in addition to an assumed start-up date of 2016, supports a margin estimate of $0.30/lb. Also, the plant is assumed to have a capacity of 250k million tons per annum. Shares of the company are currently trading around $39 per share. Cabot Corporation (CBT) operates as a specialty chemicals and performance materials company and is a competitor of LyondellBasell. Cabot has a dividend yield of 2.1%, while LyondellBasell has a dividend yield of 2.9%. LyondellBasell also generated a higher return-on-equity of 24.5%, versus the 13.5% generated by Cabot. Hedge funds prefer LYB over CBT. At the end of the third quarter, there were 44 hedge funds with bullish bets on LyondellBasell, vs. 14 for Cabot. Howards Marks' Oaktree Capital initiated a brand new po sition in LYB during the third quarter.

• [By Harding]

  LyondellBasell Industries NV (NYSE:LYB): On 3/31/11 Viking Global Investors reported holding 3,878,500 shares with a market value of $153,394,672. This comprised 1.32% of the total portfolio. On 6/30/11, Viking Global Investors held 11,800,693 shares with a market value of $454,562,700. This comprised 3.81% of the total portfolio. The net change in shares for this position over the two quarters is 7,922,193. About the company: LyondellBasell Industries NV is a manufacturing company.? The Company produces chemicals, fuels, and polymers used for packaging, clean fuels, durable textiles, medical applications, construction materials, and automotive parts.? LyondellBasell Industries operates globally and is headquartered in the Netherlands.

Top Chemical Companies To Own In Right Now: Potash Corporation of Saskatchewan Inc.(POT)

Potash Corporation of Saskatchewan Inc. produces and sells fertilizers and related industrial and feed products primarily in the United States and Canada. The company mines and produces potash, which is used as fertilizer. It also offers solid and liquid phosphate fertilizers; animal feed supplements; and industrial acids that are used in food products and industrial processes. In addition, the company produces nitrogen fertilizers, as well as nitrogen feed and industrial products, including ammonia, urea, nitrogen solutions, ammonium nitrate, and nitric acid. Further, it holds the right to mine 785,759 acres of land in Saskatchewan; and 58,263 acres of land in New Brunswick in Canada. The company sells its fertilizers primarily to retailers, dealers, co-operatives, distributors, and other fertilizer producers; industrial products primarily to chemical product manufacturers; and purified phosphoric acid directly to consumers of the product. Potash Corporation was founded i n 1953 and is based in Saskatoon, Canada.

Advisors' Opinion:

• [By Fabian]

  Potash Corp. of Saskatchewan (POT) produces fertilizers, agricultural
  chemicals and feed products — primarily its namesake “potash,” or potassium carbonate mixed with other nutrients. Though this company is down dramatically from its highs in 2008, I think POT has bottomed out and now investor sentiment is turning around.

  For instance, Potash’s moved 1.1 million tons of crop nutrients in the fourth quarter, which was down compared to the previous quarter, but the 23% slide was a dramatic improvement over the 65% decline for the full year. Potash has been struggling to find a right production target, and I feel like the company is close to an effective target.

  What’s more, potash prices could be on the rise globally after leading exporter Belarussian Potash Co. boosted prices by more than 6% in Brazil and Asia. That means companies like POT can also command a higher price — and deliver bigger profits going forward.

• [By Sam Collins]

  Canadian integrated fertilizer and feed products company, Potash Corporation of Saskatchewan (NYSE: POT), has been in a bull market since late 2008. Since then, it has risen from $18 to over $63.

  It is the world’s largest diversified fertilizer company and, thus, in a unique position to supply the needed nutrients to grow crops for Third World countries that are in need of grain products. Several research analysts have recently raised their opinion on POT from “hold” to “buy,” including Canaccord Genuity and Gleacher & Company. POT has also been the subject of takeover rumors, but thus far, nothing has developed.?

  Technically, the stock is in a long-term bull market. In December, POT broke out from a five-month consolidation, and last week, our in-house Collins-Bollinger Reversal (CBR) indicator issued a buy signal along with a buy from the slow stochastic. The two-month target for POT is $72, but it can be bought as a long-term position, as well.?

• [By Vita]

  People need to eat. Potash increases the yield of fertilizer. And in an overpopulated world with people moving into urban areas (less farmers feeding more mouths), demand will spike for whatever can increase that yield. Potash's stock is closely correlated to prices of the product Potash. It's worth noting that the stock represents billionaire financier George Soros's third largest position. Goldman Sachs just raised its rating on the the stock, saying "Investors are likely underestimating the 2012 US demand recovery that could see staggering yoy [year- over-year] percent increases in volume given the depth of the 2011 reduction and the atypically weak fall consumption levels."

Top Chemical Companies To Own In Right Now: Agrium Inc.(AGU)

Agrium Inc., together with its subsidiaries, produces and markets agricultural nutrients, industrial products, and specialty products worldwide, as well as involves in the retail supply of agricultural products and services in North and South Americas. The company?s Retail segment markets crop nutrient products, including nitrogen, phosphate, potash, sulphur, and micronutrients; crop protection products, such as herbicides, fungicides, adjuvants, and insecticides; and seeds. This segment also offers agronomic services, as well as product application, soil and leaf tissue testing and analysis, and crop scouting services. This segment operates 1,192 outlets in the United States, Canada, Australia, Argentina, Chile, and Uruguay. The company?s Wholesale segment produces, markets, and distributes nitrogen, phosphate, potash, sulphate, and other crop nutrient products for agricultural and industrial customers. This segment also owns and operates facilities that upgrade ammonia t o other nitrogen products, such as urea, nitric acid, and ammonium nitrate, as well as provides Rainbow plant food products. Agrium?s Advanced Technologies segment produces and markets controlled-release crop nutrients and micronutrients for the agriculture, specialty agriculture, professional turf, horticulture, and consumer lawn and garden markets. The company was formerly known as Cominco Fertilizers Ltd. and changed its name to Agrium Inc. in 1995. Agrium Inc. was founded in 1931 and is headquartered in Calgary, Canada.

Advisors' Opinion:

• [By Jonas Elmerraji]

  Hard commodities aren't getting all of institutional investors' hate in 2013; agricultural commodity stocks are too. Enter Agrium (AGU), the Canadian agricultural retailer. Agrium is the largest ag retailer in the U.S., selling fertilizers, chemicals and seed directly to farmers through more than 1,250 locations. One of the most attractive attributes of Agrium is the fact that the firm isn't merely a seller -- it's also the third-largest producer of potash in North America, a factor that should bode well for Agrium's margins as fertilizer prices rise.

  Agrium is well-positioned to grab onto bullish trends in the agricultural commodities. Because its customers, the farmers, have that same exposure, they're less price-sensitive to changes in costs than they would otherwise be; fertilizer and seed prices tend to move in lock-step with the prices that farmers are able to charge for their crops.

  From a macro standpoint there's reason to be bullish on the agriculture business: Growing populations and declining farmland continue to be major themes worldwide, and demand for efficiency-improving products (like fertilizers) should continue to strengthen. At the same time, Agrium's push to other regions should help to spawn growth in the next few years.

  While a proxy battle at AGU has added some extra headline risks for the firm (big holders want to split the firm's retail and wholesale fertilizer businesses), it's my view that ultimately either outcome will likely add value for investors. The combined firm has more cost savings, while the split up firm will likely see value unlocked from a public offering.

  Institutions unloaded more than $25 million shares of AGU in the last quarter.

• [By Seeking Alpha]

  Agrium (AGU) earnings are on pace to jump 60% in 2010, and analysts are expecting another 44% bump next year. Currently yielding: 0.1%

• [By Lowell]

  Agrium Inc. (NYSE:AGU): Down 1.01% to $71.84. Agrium Inc. supplies nitrogen, potash and phosphate for agricultural, industrial, and specialty use. The Company operates throughout the America’s while it markets its products globally.