Lyondell (LYB) Under Valued, Moving Higher | Here’s the Trade, Even If the Share Price Takes a Pause

LyondellBasell Industries N.V. (LYB) is a name we successfully traded last year. It is our favorite company in the chemical/process plant space as if it well runs, highly profitable and trades at a modest multiple to earnings. As a refresher, the following is a description of the company.

LyondellBasell Industries N.V. (LYB) manufactures chemicals and polymers, refines of crude oil, producer of gasoline blending components, and develops and licenses technologies for the production of polymers worldwide. It produces and markets olefins, including ethylene, propylene, and butadiene; polyethylene products, which consist of high-density polyethylene, low-density polyethylene, and linear low-density polyethylene; polyolefin, such as polyethylene and polypropylene (PP); and PP monomers, copolymers, and compounds. These are chemicals that are used in the manufacture of plastic products. Having developed expertise in the production of these products, the company generates additional revenue by licensing its technology companies to other companies. The company also produces and sells propylene oxide and its derivatives; oxyfuels and related products; and intermediate chemicals, such as styrene monomers, methanol products, glacial acetic acids, vinyl acetate monomers, and ethylene oxides and derivatives. Finally, it refines crude oil into gasoline, diesel, and jet fuel. In the last 12 months, the company generated profits of $3.8 million ($9.33/share) on $33.8o billion in revenue.

This article is for paid members - please login or subscribe for access.