Topic: How To Invest

Hi Pat: Could I have your opinion on Methanex? Thanks.

Article Excerpt

Methanex Corp., $31.10, symbol MX on Toronto (Shares outstanding: 93.2 million; Market cap: $2.9 billion; www.methanex.com), is a Vancouver-based methanol producer and distributor. The company produces 78% of its methanol in Chile, New Zealand and Trinidad (where it holds a 63.1% stake in Atlas Methanol). Last year, Methanex started production at new plants in Egypt and Medicine Hat, Alberta. Methanex also resells methanol produced by others; this accounted for 49% of its sales in 2011. The company’s extensive distribution system makes it the world’s largest methanol supplier. Methanol is usually made by mixing natural gas with steam, then putting the resulting gas mixture through a liquid conversion and distillation process to create pure methanol: a clear, liquid hydrocarbon that is water soluble and biodegradable. A wide range of products contain methanol, such as windshield washer fluid, recyclable plastic bottles, plywood floors, paint, silicone sealants and synthetic fibres. Methanol is sometimes blended with gasoline to cut emissions, and is increasingly used in other fuels, such…