Dow Chemical (DOW) is not your grandfather�� chemical company.
The 115-year old firm is shedding another unit, announcing early Monday that it is exploring the spinoff or sale of its commodity chemical business as part of the company�� ongoing efforts to shift toward higher-margin products and technologies.
Investors applauded. On a day when Dow Jones Industrial Average remained largely�flat, Dow Chemical jumped 2.6% to just over $40 a share after more than 6.6 million shares exchanged hands.
So far this year, Dow has lagged the broader stock market, rising 21% as of Friday�� closing bell.
Dow Chemical announced earlier this year it plans to raise $1.5 billion over a span of 18 months by ridding itself of non-core businesses. It has also cut jobs and closed plants to trim expenses.
In October, CEO Andrew Liveris said the company will proceed with its divestiture plans, saying the actions were valued at a minimum of $3 billion to $4 billion.
Dow Chemical recently agreed to sell its polypropylene licensing and catalysts business to fellow chemicals company W. R. Grace & Co. (GRA) for $500 million.
Koninklijke DSM N.V. (DSM), incorporated on December 28, 1966, is engaged in creating products and services in Life Sciences and Materials Sciences. DSM�� products and services are used in a range of markets and applications. End markets include human and animal nutrition and health, personal care, pharmaceuticals, automotive, coatings and paint, electrical and electronics, life protection and housing. The activities of DSM are grouped into five clusters: Nutrition, Pharma, Performance Materials, Polymer Intermediates, and Base Chemicals and Materials. In May 2010, Orascom Construction Industries announced that the acquisition of the Company�� agro and melamine businesses has been finalized. DSM completed the disposal of DSM Energie Holding B.V. (DSM Energy) to TAQA Abu Dhabi National Energy Company PJSC on September 30, 2009. In September 2010, the Company acquired Microbia, Inc. from Ironwood Pharmaceuticals, Inc. In December 2010, the Company completed the sale of DSM Special Products B.V. to Emerald Performance Materials. In February 2011, the Company completed the acquisition of Martek Biosciences Corporation. In May 2011, the Company sold DSM Elastomers to Lanxess AG. In June 2012, the Company acquired Kensey Nash Corporation (Kensey Nash).
Nutrition
The Nutrition cluster comprises DSM Nutritional Products and DSM Food Specialties. The nutrition and food ingredients businesses serve the food, feed, cosmetic and pharmaceutical industries. DSM holds positions in the markets for ingredients for human and animal nutrition and health. DSM Nutritional Products is the supplier of vitamins, carotenoids, nutritional ingredients, ultra-violet (UV) filters and premixes for human and animal nutrition and health. DSM Nutritional Products is organized around two entities: Animal Nutrition and Health (ANH) and Human Nutrition and Health (HNH). DSM Food Specialties is a global manufacturer of food enzymes, cultures, yeast extracts and other specialty ingredients for the food and b! everage industries.
DSM Food Specialties comprises two business units and an Ingredients Development Unit. Enzymes & Dairy Ingredients supplies a range of food enzymes for applications such as dairy, baking, fruit processing, brewing and wine, starter cultures for cheese and yogurt, preservation solutions for cheese and meat, and tests for the detection of residues of antibiotics in milk. Savoury Ingredients is a major supplier of ingredients for flavorings and flavor enhancers (such as yeast extracts) used in products, such as soups, instant meals, sauces and savory snacks.
Pharma
The Pharma cluster comprises the business groups DSM Pharmaceutical Products (DPP) and DSM Anti-Infectives. DSM is an independent supplier to the pharmaceutical industry. DSM Pharmaceutical Products is a provider of custom contract manufacturing and development services to the pharmaceutical, biopharmaceutical and agrochemical industries.
DSM Pharmaceutical Products consists of three business units: DSM Pharma Chemicals (custom chemical manufacturing services for complex registered intermediates and active pharmaceutical ingredients (APIs), including DSM Exclusive Synthesis (custom manufacturing services for the crop protection industry), DSM Biologics (biopharmaceutical manufacturing technology and services) and DSM Pharmaceuticals, Inc. (finished-dose-form manufacturing services). DSM BioSolutions focuses on custom manufacturing services based on microbial fermentation. DSM Anti-Infectives holds global leadership positions in penicillin G, penicillin intermediates (6-APA and 7-ADCA), active pharmaceutical ingredients such as semi-synthetic penicillins and semi-synthetic cefalosporins (beta-lactams), and other active ingredients, such as nystatin.
Performance Materials
The Performance Materials cluster comprises the business groups DSM Engineering Plastics, DSM Dyneema and DSM Resins. The products are used in a variety of end-use markets: the au! tomotive ! industry, the aviation industry, the electrical and electronics industry, the sports and leisure industries, the paint and coatings industry and the construction industry.
DSM Engineering Plastics is a global player in polyamides, polyesters, polycarbonates and adhesive resins. These materials are used in components for the electrical and electronics, automotive, engineering and packaging industries. DSM produces Dyneema fiber and UD (unidirectional textile sheets) in Heerlen (Netherlands) and in Greenville (North Carolina, United States) through its gel-spinning process. DSM Resins consists of four business units: DSM NeoResins+, DSM Powder Coating Resins, DSM Desotech and DSM Composite Resins.
Polymer Intermediates
The Polymer Intermediates cluster consists of DSM Fiber Intermediates. DSM Fibre Intermediates produces caprolactam and acrylonitrile, which are raw materials for synthetic fibers and engineering plastics. Other products include ammonium sulfate (a fertilizer), diaminobutane, sodium cyanide and cyclohexanone. DSM�� caprolactam production capacity is more than 600,000 tons per annum.
Base Chemicals and Materials
The Base Chemicals and Materials cluster consists of DSM Agro, DSM Melamine, DSM Elastomers and a number of activities that have been carved out from other clusters. DSM Agro produces fertilizers and is active in Northwestern Europe. DSM Melamine is a producer of melamine, used in wood-based panels and laminates for furniture and flooring. DSM Elastomers manufactures synthetic rubbers (EPDM) for use in cars and other transportation vehicles, white goods, various industrial products and construction materials and as motor-oil additives.
DSM Agro is a producer of ammonia and high-nitrogen fertilizers for grasslands and agricultural crops; products and services for responsible fertilization. DSM Agro sells about 2.4 million tons of fertilizers per year. The Base Chemicals and Materials cluster also includes! several ! activities that have been carved out from other clusters. These include Citric Acid, DSM Special Products and the Maleic Anhydride and derivatives business.
Other activities
Other activities comprise various activities and businesses that do not belong to any of the five reporting clusters. It consists of both operating and service activities and also includes a number of costs that cannot be logically allocated to the clusters. Other activities includes the DSM Innovation Center, DSM Venturing and a number of other activities, such as Sitech Services, EdeA, DSM Insurances and part of the costs of corporate activities. Sitech Services provides technological consultancy, expertise in energy and auxiliary materials, the supply of utilities and human resources.
EdeA VoF owns, operates and maintains most of the production and distribution facilities for utilities (for example steam, power and water) at the Chemelot site in Sittard-Geleen (Netherlands). EdeA VoF is a joint venture with Essent, an energy production and distribution company. DSM�� stake is 50%. DSM retains a limited part of its Property Damage and Business Interruption and Product Liability risks via a captive insurance company. DSM has a share in a limited number of associates.
Advisors' Opinion: - [By Markus Aarnio]
BioAmber expects its advanced bio-based specialty chemicals to compete with petrochemical equivalents that are proven in the market and manufactured by established companies, such as Gadiv Petrochemical Industries, Kawasaki Kasei, DSM (RDSMY.PK) and numerous small Chinese producers including Anqing Hexing Chemical, and Anhui Sunsing Chemicals. In addition, BioAmber's products will compete against other companies in the bio-based specialty chemical industry, both early stage companies, such as Genomatica (for bio-based 1,4 BDO) and Myriant Corporation (for bio-succinic acid), and established companies, such as a collaborative venture between DSM and Roquette Frères S.A. and a collaborative venture between BASF (BASFY.PK) and Purac (both for bio-succinic acid).
Best Chemical Stocks To Watch Right Now: NewMarket Corp (NEU)
NewMarket Corporation (NewMarket), incorporated in 2004, is a holding company, which is the parent company of Afton Chemical Corporation (Afton), Ethyl Corporation (Ethyl), NewMarket Services Corporation (NewMarket Services), and NewMarket Development Corporation (NewMarket Development). Each of the Company�� subsidiaries manages its own assets and liabilities. Afton encompasses the petroleum additives business, while Ethyl represents the sale and distribution of tetraethyl lead (TEL) in North America and certain petroleum additives manufacturing operations. NewMarket Development manages the property, which it owns in Richmond, Virginia. NewMarket Services provides administrative services to NewMarket, Afton, Ethyl, and NewMarket Development. NewMarket Services departmental expenses and other expenses are billed to NewMarket and each subsidiary pursuant to services agreements between the companies.
As a specialty chemicals company, Afton develops, manufactures, and blends formulated fuel and lubricant additive packages, and markets and sells these products globally. Afton is a lubricant and fuel additives companies globally. Lubricant and fuel additives are products for maintenance and reliable operation of all vehicles and machinery. Ethyl provides contract manufacturing services to Afton and to third parties and is one of the marketers of TEL in North America. NewMarket Development manages the property, which it owns on a site in Richmond, Virginia consisting of approximately 64 acres.
Petroleum Additives
Petroleum additives are used in lubricating oils and fuels to enhance their performance in machinery, vehicles, and other equipment. It manufactures chemical components, which are selected to perform specific functions and combine those chemicals with other components to form additive packages for use in specified end-user applications. The petroleum additives market is an international marketplace, with customers ranging from oil companies and refineries t! o original equipment manufacturers (OEMs) and other specialty chemical companies. Lubricant additives are ingredients for lubricating oils. Lubricant additives are used in a range of vehicle and industrial applications, including engine oils, transmission fluids, gear oils, hydraulic oils, turbine oils, and in other application where metal-to-metal moving parts are utilized. Lubricant additives are organic and synthetic chemical components, which enhance wear protection, prevent deposits, and protect against the hostile operating environment of an engine, transmission, axle, hydraulic pump, or industrial machine.
Lubricants are used in every piece of operating machinery from heavy industrial equipment to vehicles. Lubricants provide a layer of protection between moving mechanical parts. Lubricants serve the functions, such as friction reduction, heat removal and containment of contaminants.
The Company offers a range of lubricant additive products, each of which is composed of component chemicals specially selected to perform desired functions. It manufactures the chemical components and blends these components to create formulated additives packages. Purchasers of lubricant additives tend to be oil companies, distributors, refineries, and compounders/blenders. The engine oils market�� primary customers include consumers, service dealers, and OEMs. Afton offers products, which enhances the performance of mineral, part-synthetic, and fully-synthetic engine oils.
The driveline additives submarket is consisted of additives designed for products, such as transmission fluids, gear oils, and off-road fluids. Transmission fluids serve as the power transmission and heat transfer medium in the area of the transmission. Gear oil additives lubricate gears, bearings, clutches, and bands in the gear-box and are used in vehicles, off-highway, hydraulic, and marine equipment. Other products in this area include hydraulic transmission fluids, universal tractor fluids, power ste! ering flu! ids, shock absorber fluids, gear oils and lubricants for machinery. These additives are sold to oil companies and often sold to vehicle OEMs for new vehicles. End-products are also sold to service dealers for aftermarket servicing (service-fill), as well as retailers and distributors.
The industrial additives submarket is consisted of additives designed for products for industrial applications, such as hydraulic fluids, grease, industrial gear fluids, industrial specialty applications, and metalworking additives. This submarket also shares in the 30% of the market not covered by engine oils. These products must conform to industry specifications, OEM requirements and/or application and operating environment demands. Industrial additives are sold to oil companies, service dealers for after-market servicing, and distributors.
The types of fuel additives the Company offers include gasoline performance additives, which clean and maintain fuel delivery systems, including fuel injectors and intake valves, in gasoline engine; diesel fuel performance additives, which perform similar cleaning functions in diesel engines; cetane improvers, which increase the cetane number in diesel fuel by reducing the delay between injection and ignition; stabilizers, which reduce or eliminate oxidation in fuel; corrosion inhibitors, which minimize the corrosive effects of combustion by-products and prevent rust; lubricity additives, which restore lubricating properties lost in the refining process; cold flow improvers, which improve the pumping and flow of diesel in cold temperatures, and octane enhancers. It offers a range of fuel additives globally and sells its products to fuel marketers and refiners, as well as independent terminals and other fuel blenders.
Real Estate Development
The real estate development segment represents the operations of Foundry Park I, LLC (Foundry Park I). The Company is exploring various development opportunities for other portions of the proper! ty it own! s, as the demand warrants.
All Other
The All other category includes the continuing operations of the TEL business (primarily sales of TEL in North America), as well as contract manufacturing performed by Ethyl. Ethyl manufacturing facilities include its Houston, Texas and Sarnia, Ontario, Canada plants. The Houston plant is engaged in petroleum additives manufacturing and produces both lubricant additives and fuel additives. The Sarnia plant is engaged in petroleum additives manufacturing and produces fuel additives. The All other category financial results include a service fee charged by Ethyl for its production services to Afton. Its remaining manufacturing facilities are part of Afton and produce both lubricant additives and fuel additives.
The Company competes with Berkshire Hathaway Inc., ExxonMobil Chemical, Royal Dutch Shell plc, Chevron Oronite Company LLC, BASF AG, Chevron Oronite Company LLC, The Lubrizol Corporation, Innospec, Inc., Eurenco and EPC - U.K.
Advisors' Opinion: - [By John Udovich]
The biotech sector has been pretty exciting this year�with small cap biotech stocks Prana Biotechnology Limited (NASDAQ: PRAN) and TNI BioTech (OTCMKTS: TNIB) having recently produced noteworthy news for investors�while Acceleron Pharma, Inc (NASDAQ: XLRN), Ophthotech (NASDAQ: OPHT) and BIND Therapeutics (NASDAQ: BIND) have just�set term sheets for their upcoming IPOs. Just consider all of the following recent news:
Surge in Biotech IPOs. Unquote.com has noted�a surge in biotech IPOs this year as there have been�almost 30 biotech IPOs since January - marking a 13-year high and sparking some concerns about a bubble. More specifically and according to the National Venture Capital Association (NVCA), there was just one venture capital-backed biotech IPO in the US in the first quarter of this year, but this was followed by a massive increase of 20 in�the second quarter and a�further six since July. There has also been a small uptick in�venture capital-backed European biotech companies going public (four) with�a listing on the Nasdaq appearing to be the most popular or rather the safest option. � New IPO Term Sheets. This month, a couple of small cap biotech companies announced their terms for upcoming IPOs, including 1)�Acceleron Pharma, Inc, a clinical stage biotech developing protein therapeutics for cancer and rare diseases, plans to raise $65 million by offering 4.7 million shares at a price range of $13 to $15; 2) Ophthotech, a clinical-stage biotech developing therapeutics for eye diseases, plans to raise $100 million by offering 5.7 million shares at a price range of $16 to $19; and 3) BIND Therapeutics, a clinical-stage biotech developing a platform of targeted and programmable therapeutics, plans to raise $71 million by offering 4.7 million shares at a price range of $14 to $16. Biotechs Invest More on R&D. The 2013 BDO Biotech Briefing examined the most recent 10-K SEC filings of publicly traded companies listed on the Nasdaq Biotechnolog
Best Chemical Stocks To Watch Right Now: Akzo Nobel NV (AKZOY)
Akzo Nobel N.V. (AkzoNobel) is a global paints and coatings company and a producer of specialty chemicals. The Company operates in three segments: Decorative Paints, Performance Coatings and Specialty Chemicals. During the year ended December 31, 2009, the Company two distributors in Continental Europe. During 2009, it also acquired SABA, Kronospan and Dow Powder Coatings assets. During 2009, it also divested Chemcraft Brazil and the non-stick businesses. In January 2009, the Company completed the acquisition of LII Europe. In June 2010, the Company completed the acquisition of the Dow Chemical company's powder coatings activities. In June 2010, the Company announced the sale of its National Starch business to Corn Products International. In June 2010, the Company announced the sale of its National Starch business to Corn Products International. In September 2010, the Company acquired Changzhou Prime Automotive Paint Co. In October 2010, Corn Products International, Inc. acquired National Starch, the specialty starches business of the Company.
Decorative Paints
The Decorative Paints segment supplies a range of interior and exterior decoration and protection products for both the professional and do-it-yourself markets. Its products include paints, lacquers and varnishes, as well as products for surface preparation (pre-deco products). Its architectural coatings include interior and exterior wall paints and trim paints (lacquers) for consumers and professionals. The wood care and specialty products include lacquers and varnishes for wood protection and decoration, and specialty coatings for metal, concrete and other critical building materials. Its pre-deco products include fillers, wall treatments, sealants and putties for consumers and professionals. Its building adhesives include tile and floor adhesives and floor leveling compounds used in the building and renovation industry; supplied for professional workers, such as tile, floor and parquet, layers, interior decorators ! and painters, and direct to medium-sized enterprises, wholesalers, specialized retailers.
Performance Coatings
The Company�� Performance Coatings segment serves a range of customers, including ship and yacht builders and architects, consumer electronics and appliance companies, steel manufacturers, the construction industry, furniture makers, aircraft, bus and truck producers, body shops and can makers. The Company offers metal and plastic coatings for a range of applications from huge industrial equipment to the mobile phones and music players, computers, espresso machines and sporting goods. It also offers corrosion and fire protection across a range of industries, including upstream and downstream oil and gas facilities, chemical and petrochemical installations, high value infrastructure, such as airports and stadia and power generation stations. The Company provides coatings for small and large aircraft. It also offers coatings for marine vessels, including commercial tankers, ferries and leisure craft, and act as a salt water barrier and to minimize the build-up of organic material.
Specialty Chemicals
The Company�� Specialty Chemicals products are used in a range of everyday products, such as ice cream, soups, disinfectants, plastics, soaps, detergents, cosmetics, paper and asphalt. Its Industrial Chemicals business mines salt through vacuum extraction. It�� used as a raw material for its own activities, as well as being an end product found in grocery stores under brand names, such as Jozo and Nezo. The Company offers products, such as chlorine (Industrial Chemicals) or chlorate (Pulp and Paper Chemicals). Its major products include cellulosic additives, chelates, additives, ethylene amines, salt specialties and sulfur derivatives.
Advisors' Opinion: - [By Victor Selva]
The company has a current ratio of 17.8% which is higher than the industry mean of 6.55%. Also, it's higher than the one registered by Akzo Nobel NV (AKZOY), Cabot Corporation (CBT) and Olin Corporation (OLN). For investors looking for a higher ROE, PPG Industries Inc. (PPG) could be the option.
- [By Rich Duprey]
In a move designed to strengthen the performance of its German decorative paints business,�Netherlands-based paint giant AkzoNobel (NASDAQOTH: AKZOY ) announced today that it is divesting to independent distributors that country's�paints stores for professionals.
- [By Lawrence Meyers]
VAL stock trades at about 18�timesFY14 estimates of $4.08. Even accounting for the 1.4% yield, it�� a tad bit pricey at 14% long-term EPS growth. But let�� look at competitors. PPG Industries (PPG) trades at 21�times�earnings on 11% long-term growth. Sherwin-Williams (SHW) trades at 24x earnings on 14.6% long-term growth. Akzo Nobel (AKZOY) trades at 16 times earnings on 11% growth.
Best Chemical Stocks To Watch Right Now: Enzymotec Ltd (ENZY)
Enzymotec Ltd., incorporated on March 08, 1998, is engaged in manufacturing of ingredients and medical foods company. Its technologies, research, and clinical validation process enables the Company to develop differentiated solutions across a variety of products. The Company markets its product portfolio primarily to established global consumer companies and target large and growing consumer health and wellness markets. Its clinically validated products include bio-functional lipid-based compounds designed to address dietary needs, medical disorders and common diseases. The Company operates in two segments: Nutrition and VAYA Pharma. In addition to its existing products, the Company has several other products to address additional indications in the development phase. enzyme processes; lipid modification; lipid analysis; and process technology and development.
Nutrition
The Company�� Nutrition segment develops and manufactures nutritional ingredient products based on lipids, such as phospholipids, which form the structural basis of cell membranes and are easily recognized, incorporated and used by the body. Its customer base for this segment includes formula and nutritional supplement companies such as Biostime and IVC. Its two selling nutritional ingredient products are InFat, a clinically-proven fat ingredient for infant formula, and krill oil. Its other products in this segment are targeted at improving brain health and providing benefits in memory, learning abilities and concentration.
VAYA Pharma
VAYA Pharma, develops, manufactures and sells branded, prescription-only medical foods for the dietary management of patients with certain medical conditions or diseases having special, medically determined nutrient requirements. Although medical foods must be safe and effective as demonstrated in human clinical studies, they do not require the same expensive and time consuming regulatory approval process typical of prescription drugs. In addition to! its existing products, it has several other products to address additional indications in the development phase.
Advisors' Opinion: - [By Victor Selva]
Finally, as opposed to what we just discussed, the firm is currently Zacks Rank # 4��ell, and it also has a longer-term recommendation of ��eutral�� A Sell rating indicates that the stock, over the next 1 to 3 months, will perform at an annualized rate of 4.8%, which is not attractive for investors. For investors looking for a Strong Buy Rank, BioLife Solutions, Inc. (BLFS) and Enzymotec Ltd. (ENZY) could be the options.