CE: I don't understand the chemical business or how to place these statements into a value context: "PSX apparently also has a proprietary process producing higher quality ethylene and polyethylene from ethane and naphtha at lower cost. In addition PSX licenses technology to competitors. 80% capaicty is within US where it uses low price ethane and sell into high price markets, earning good spread. Valued at approx. $13 a share at 10x P/E"
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I've placed an order to buy Celanese, if it'll drop back back a bit. I like this company for its relatively low p/e (8x, low historically past few years). And again, I don't know its chemical business. However, it's in two areas that might capture the imagination of potential small investors (more so I mean than a process that makes "high quality ethylene from ethane" -g-)
1. Conversion of natural gas to ethanol: "Celanese Corporation (NYSE: CE), a global technology and specialty materials company, today announced its intention to construct and operate a methanol production facility at its Clear Lake, Texas acetyl complex. As one of the world’s largest producers of acetyl products, the company plans to utilize its existing infrastructure to capture the opportunities created by abundant and affordable U.S. natural gas supplies.
“The positive developments in the U.S. energy complex and the current and emerging natural gas surplus make it advantageous for us to produce our own methanol requirements for U.S. acetyl production,” said Mark Rohr, chairman and chief executive officer of Celanese. “Utilizing existing Celanese infrastructure helps reduce capital requirements while capturing advantages of state-of-the-art technologies.”"
2. A zero calorie sweetener:
"DALLAS (June 25, 2012) –Nutrinova, the global sweetener and preservative business of Celanese Corporation (NYSE: CE), has launched the new SunsationSM platform to help food and beverage manufacturers develop low- and no-calorie products that are better tasting. The first product in the platform is Sunsation Sunett® SL, a sweetener system for sugar-reduced or sugar-free food and beverage products. Sunsation Sunett SL is a step change from Nutrinova’s current Sunett® sweetener which is used in more than 5,000 food, beverage and pharmaceutical products."
celanese.com |
