What do you think of Methanex?
Thanks,
Dave
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Hey Dave,
Thanks for the assignment. Methanex Corp. (MX TSX) produces and markets methanol which is used in a variety of products including windshield washer fluid, plywood floors, paints, silicone sealants, and synthetic fibres. The company has producing facilities in Canada, the United States, Chile, Egypt, New Zealand, and Trinidad and Tobago. Natural gas is the feed stock used in the production of methanol.
An inspection of the charts will determine my thinking with regards to this stock.
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The three-year chart indicates that volatility has been the dominant pattern since MX topped out near $78.00 in March of 2014. The MACD and the RSI have generated a number of buy and sell signals that are worth mentioning. The first are the sell signals that formed in March of 2014 as the shares were overbought. In addition, there are the buy signals in December of 2014 as the stock caught a bounce off $50.00 and ran to a 52-week high of $74.43 in early May of 2015.
In July of 2015 MX began another retreat after meeting resistance at $70.00, which took the shares down to a 52-week low of $42.60 in late September. The best strategy over the last twenty-one months would have been to trade the shares for profits when opportunities presented themselves.
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The six-month chart isn't providing a lot of evidence that we might expect a new leg up in the near future. The MACD and the RSI are neutral at this time, while the stock is moving in a slight down channel. MX needs an improvement in the global economy to move the stock price higher. I would recommend increased surveillance to see if you can identify a new trend.
Next time I will investigate firearms makers, Smith & Wesson Holding Inc. (SWHC NASDAQ) , Sturm Ruger & Co. (RGR NYSE), and Vista Outdoor Inc. (VSTO NYSE) for Lyle.
Make it a profitable day and happy capitalism!