Topic: How To Invest

Q: Pat, please can I get your thoughts on Methanex?

Article Excerpt

A: Methanex Corp., $19.39, symbol MX on Toronto (Shares outstanding: 76.2 million; Market cap: $1.4 billion; is the world’s largest methanol producer with an estimated global market share of 14%. The company is based in Vancouver, Canada. Methanol is a clear, liquid hydrocarbon that is distilled from natural gas. It’s used as a precursor to produce chemicals such as acetic acid and formaldehyde, which are in turn used to manufacture a diverse range of products such as adhesives, foams, plywood subfloors, solvents, windshield washer fluid, and olefins (a lightweight synthetic fibre used in textiles). Investors should also note that methanol is used as an alternative fuel source (either on its own or blended); a component in biodiesel; and in the production of dimethyl ether (a fuel similar to propane). The company produces 24% of its methanol in New Zealand, 23% in the U.S., 23% in Trinidad (where it holds a 63.1% stake in Atlas Methanol), 19% in Chile, 7% in Medicine Hat,…

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