Best Chemical Stocks To Watch For 2014

Even as Dow Chemical� (NYSE: DOW  ) �agreed to follow through on one of the recommendations made by�activist investor Daniel Loeb following his declaration last week that he had amassed a sizable $1.3 billion stake in the speciality chemicals maker, it couldn't help but tweak him a bit while also rejecting the thrust of his larger proposal to spinoff its petrochemical business.

The specialty chemicals company said it will triple its stock buyback program, which Loeb believed could be a defensible action to take following the separation of the petrochemical unit as an overall plan to enhance shareholder value. It then went further by saying it will raise it's quarterly dividend by 15%, to $0.37 per share, a measure that the hedge fund operator didn't ask for, but no doubt appreciates nonetheless. But when it comes to spinning off the petrochemical business, Dow drew the line in rejecting it, and even scoffed that anyone could even consider the company as a petchem company, because it's already exited more than $10 billion in commodities.�

Hot Small Cap Stocks To Own For 2015: W. R. Grace & Co (GRA)

W.R. Grace & Co. (Grace), incorporated on August 6, 1997, is engaged in the production and sale of specialty chemicals and specialty materials on a global basis. The Company operates in three segments: Grace Catalysts Technologies; Grace Materials Technologies; and Grace Construction Products. Grace Catalysts Technologies will include catalysts and related technologies used in refining, petrochemical and other chemical manufacturing applications. Grace's Advanced Refining Technologies LLC (ART) joint venture will be managed in this segment. Grace Materials Technologies will include engineered materials, coatings and sealants used in industrial, consumer, pharmaceutical and packaging applications. Grace Construction Products will include specialty construction chemicals and specialty building materials used in commercial, infrastructure and residential construction. The Company conducts business in over 40 countries. In July 2012, the Company acquired Rheoset Industria e Comercio de Aditivos Ltda. In November 2012, the Company acquired the assets of Noblestar Catalysts Co., Ltd. In April 2013, it acquired Chemind Construction Products. In December 2013, the Company announced that it has completed the acquisition of the assets of the Polypropylene Licensing and Catalysts business of The Dow Chemical Company.

Refining Technologies

The Company is engaged in developing and manufacturing fluid catalytic cracking (FCC) catalysts and additives for petroleum refiners. Grace markets hydroprocessing catalysts primarily through ART, its joint venture with Chevron Products Company (Chevron). The Company established ART to combine its technology with that of Chevron and to develop, market and sell hydroprocessing catalysts to customers in the petroleum refining industry worldwide. Grace is a supplier of hydroprocessing catalysts designed for processing these feedstocks. The Company offers products for fixed-bed resid hydrotreating, on-stream catalyst replacement, ebullating-bed resid hydro! cracking and distillate hydrotreating processes. It also offers a full line of catalysts, customized for individual refiners, used in processing ultra-low sulfur content gasoline and diesel fuel, including its SMART Catalyst System and ApART catalyst system.

Grace provides enabling technologies that are silica- and silica-alumina-based functional additives and process aids, such as silica gel, colloidal silica, zeolitic adsorbents, precipitated silica and silica-aluminas, for a range of applications. The Company�� product portfolio includes PERKASIL, LUDOX, PHONOSORB, PHONOSORB MTX, SYLOBEAD, SYLOSIV, CRYOSIV, SAFETYSORB, PoliEdge, SYLODENT, SYLOID FP, SYLOBLANC, ELFADENT, SYLOID, DARACLAR, TriSyl, SHIELDEX, SYLOWHITE, SYLOJET, DURAFILL, LUDOX, DAREX, DARAFORM, DARASEAL, DARABLEND, Sincera, Celox, Apperta, Sistiaga, and SAFETYSORB.

Specialty Technologies

The Company is a provider of catalyst systems and catalyst supports to the polyolefins industry for a variety of polyethylene and polypropylene process technologies. These types of catalysts are used for the manufacture of polyethylene and polypropylene resins used in products such as plastic film, high-performance plastic pipe, automobile parts, household appliances and household containers. Its Magnapore polymerization catalyst is used to produce high performance polyethylene in the slurry loop process for pipe and film applications. Its POLYTRAK polymerization catalyst is used in automobile bumpers and household appliances. The Company's DAVICAT standard and customized catalysts offer a range of chemical and physical properties based on its material science technology for supported catalysts, polystyrene, herbicide, neutriceuticals and on purpose olefins. The Company's RANEY nickel, cobalt and copper hydrogenation and dehydrogenation catalysts are used for the synthesis of organic compounds for the fibers, polyurethanes, engineered plastics, pharmaceuticals, sweeteners and petroleum industries.

Gr! ace Const! ruction Products

Grace Construction Products produces and sells specialty construction chemicals and specialty building materials. It includes construction chemicals including concrete admixtures and fibers used to modify the rheology, improve the durability and enhance various other properties of concrete, mortar, masonry and other cementitious construction materials; and additives used in cement processing to improve energy efficiency in manufacturing, enhance the characteristics of finished cement and improve ease of use, and Building materials used in both new construction and renovation/repair projects. The products protect buildings and civil engineering structures from water, vapor and air penetration. The portfolio includes waterproofing membranes for commercial and residential buildings, specialty grouts for use in waterproofing and soil stabilization applications, air and vapor barriers, and other products to solve the specialized needs of preventative and repair applications.

The Company competes with Albemarle, BASF, Criterion, Haldor Topsoe, Axens, PQ/INEOS, Evonik, UOP, Altana, Waters Corporation, Agilent Technologies, Thermo-Fisher and Sika.

Advisors' Opinion:

• [By Johanna Bennett]

  Dow Chemical recently agreed to sell its polypropylene licensing and catalysts business to fellow chemicals company W. R. Grace & Co. (GRA) for $500 million.

• [By Steve Sears]

  New stocks in what Goldman calls the “Hedge Fund VIP list,”�include Actavis (ACT), Baidu (BIDU), Berkshire Hathaway (BRK.B), Crown Castle International (CCI), Entergy Louisiana (ELB), �Equinix (EQIX), Facebook (FB), Fleetcor Technologies (FLT), W.R. Grace (GRA), MetLife (MET), Macquarie Infrastructure (MIC), Micron (MU), Time Warner Cable (TWC), and Time Warner (TWX).

• [By Rich Duprey]

  Yet the price spike also spurred the development of�alternatives to the metals. Toyota (NYSE: TM  ) , for example, began manufacturing cars with induction motors rather than with those using rare earth magnets, as did General Motors (NYSE: GM  ) , which noted that although they're slightly less efficient, they're also a heckuva lot cheaper to make and buy. General Electric (NYSE: GE  ) began developing wind turbine generators that relied less upon permanent-magnet machines and W.R. Grace (NYSE: GRA  ) offered fluid catalytic cracking catalysts, which oil refiners use to produce gasoline and diesel, that contained�less�lanthanum.�

Best Chemical Stocks To Watch For 2014: ICL Israel Chemicals Ltd (ISCHY.PK)

ICL Israel Chemicals Ltd (ICL) is an Israel-based company, engaged in the fertilizer and specialty chemical sectors. The company operates in three segments: Fertilizers, Industrial Products, and Performance Products. The Fertilizers segment is engaged in the production of standard, granular, fine red and white potash from three sources, as well as in the production of phosphates, such as phosphate rock, phosphoric acid, fertilizers and animal feed addictives. The Industrial Products segment produces flame retardants, such as brominates and organ phosphorus; elemental bromine, and other chemicals. In addition the Performance Products segment produces specialty phosphates, such as technical, food grade and electronic grade phosphoric acid, phosphate salts, food additives and wildfire safety products, as well as alumina and other chemicals. Advisors' Opinion:

• [By Chris Damas]

  I never thought Uralkali would get back together with Belaruskali as I expressed in this article written a day after the break-up roiled the fertilizer world, causing 20% plunges in the stocks of major producers such as Potash Corp (POT), Mosaic Company (MOS) and Israel Chemicals Ltd (ISCHY.PK).

Best Chemical Stocks To Watch For 2014: PolyOne Corp (POL)

PolyOne Corporation (PolyOne), incorporated on August 31, 2000, is a provider of specialized polymer materials, services and solutions with operations in specialty polymer formulations, color and additive systems, polymer distribution and specialty vinyl resins. The Company is a specialized developer and manufacturer of additives, liquid colorants, and fluoropolymer and silicone colorants. The Company offers approximately 52,000 polymer solutions to approximately 14,000 customers across the globe. The Company has 60 manufacturing sites and nine distribution facilities in North America, Europe, Asia and South America. The Company operates in four segments: Global Specialty Engineered Materials; Global Color, Additives and Inks; Performance Products and Solutions, and PolyOne Distribution. On January 3, 2011, the Company acquired Uniplen Industria de Polimeros Ltda. (Uniplen). In February 2011, the Company sold its 50% interest in SunBelt Chlor Alkali Partnership (SunBelt). On December 21, 2011, the Company acquired ColorMatrix Group, Inc. In December 2012, the Company acquired Glasforms Inc. Effective March 13, 2013, the Company acquired the interest of Spartech Corporation.

Global Specialty Engineered Materials

Global Specialty Engineered Materials is a provider of custom plastic formulations, services and solutions for designers, assemblers and processors of thermoplastic materials across a range of markets and end-use applications. Its product portfolio includes standard and custom formulated high-performance polymer compounds that are manufactured using thermoplastic compounds and elastomers, which are then combined with advanced polymer additive, reinforcement, filler, colorant and/or biomaterial technologies. The segment includes GLS Corporation (GLS). Global Specialty Engineered Materials has plants, sales and service facilities located throughout North America, Europe and Asia and South America.

Global Color, Additives and Inks

Global Color! , Additives and Inks is a provider of specialized color and additive concentrates, as well as inks and latexes. Its additive masterbatches encompass a range of performance enhancing characteristics and are commonly categorized by the function that they perform, such as ultra violet (UV) stabilization, anti-static, chemical blowing, antioxidant and lubricant, and processing enhancement. Its colorant and additives masterbatches are used in a range of plastics, including those used in food and medical packaging, transportation, building products, pipe and wire and cable markets. The Company also provides custom-formulated liquid systems that meet a variety of customer needs and chemistries, including vinyl, natural rubber and latex, polyurethane and silicone. Products include inks and latexes for diversified markets, including recreational and athletic apparel, construction and filtration, outdoor furniture and healthcare. Global Color, Additives and Inks has plants, sales and service facilities located throughout North America, Europe, Asia and North America.

Performance Products and Solutions

Performance Products and Solutions offers an array of products and services for vinyl coating, molding and extrusion processors principally in North America. Its product offerings include vinyl compounds, vinyl resins, and specialty coating materials based on vinyl. These products are sold to manufacturers of plastic parts and consumer-oriented products. The Company also offers a range of services, including materials testing and component analysis, custom compound development, colorant and additive services, design assistance, structural analyses, process simulations and extruder screw design. Vinyl is utilized across a range of applications in building and construction, wire and cable, consumer and recreation markets, transportation, packaging and healthcare. The segment also includes Producer Services, which offers custom compounding services to resin producers and processors that desig! n and dev! elop their own compound and masterbatch recipes.

PolyOne Distribution

The Company�� PolyOne Distribution business distributes approximately 3,500 grades of engineering and commodity grade resins, including PolyOne-produced compounds, to the North American market. These products are sold to approximately 5,700 custom injection molders and extruders who, in turn, convert them into plastic parts that are sold to end-users in a range of industries. Representing approximately 20 major suppliers, the Company offers its customers a product portfolio, just-in-time delivery from multiple stocking locations and local technical support. During the year ended December 31, 2011, the Company extended its distribution operations to Asia.

Advisors' Opinion:

• [By Travis Hoium]

  What: Shares of PolyOne (NYSE: POL  ) jumped 10% today after the company reported earnings.

  So what: First quarter revenue was up 7.5% to $801.1 million and adjusted earnings per share rose 29% to $0.31. Analysts expected higher revenue of $817.1 million but only $0.26 in earnings per share so the bottom line is what investors are excited about today. �

Best Chemical Stocks To Watch For 2014: Braskem SA (BRKM5)

Braskem SA is a Brazil-based company primarily engaged in the manufacture of basic petrochemical products. The Company operates in five segments: Basic petrochemicals, Polyolefins, Vinyls, International businesses and Chemical Distribution. The Company�� products portfolio includes ethylene, propylene, butadiene, toluene, xylene, benzene, gasoline, diesel oil, liquefied petroleum gas (LPG), as well as thermoplastic resins, such as polyethylene (PE), polypropylene (PP) and polyvinyl chloride (PVC). Additionally, Braskem is also engaged in the import and export of chemicals, petrochemicals and fuels; the production, supply and sale of utilities, such as steam, water, compressed air, industrial gases, as well as the provision of industrial services, and the production, supply and sale of electric energy for its own use and use by other companies. The Company also invests in other companies, either as a partner or shareholder. Advisors' Opinion:

• [By Harry Suhartono]

  Brazil�� Ibovespa rose for a third day as traders pared bets on higher borrowing costs in Brazil, boosting the outlook for companies that sell in the local market. B2W Cia. Digital led gains among retailers, with Lojas Americanas SA (LAME3) and Natura Cosmeticos SA (NATU3) also trading higher. Petrochemicals producer Braskem SA (BRKM5) was the worst performer on the equity gauge after O Estado de S.Paulo reported Petroleo Brasileiro SA (PETR4) is seeking to raise prices of naphtha sold to the company by 5 percent.

Best Chemical Stocks To Watch For 2014: Calgon Carbon Corp (CCC)

Calgon Carbon Corporation is a provider of products, services, and solutions for purifying water and air. The Company operates in three reportable segments: Activated Carbon and Service, Equipment, and Consumer. The Activated Carbon and Service segment manufactures granular and powdered activated carbon for use in applications to primarily remove organic compounds from water, air and other liquids and gases. The service aspect of the segment consists of reactivation and the leasing, monitoring and maintenance of carbon adsorption equipment. The Equipment segment provides solutions to customers��air and water purification problems through the design, fabrication, installation, and sale of equipment systems that utilize a combination of the Company�� enabling technologies: carbon adsorption, ultraviolet light (UV), Ballast Water Treatment (BWT), and advanced ion exchange separation (ISEP). The Consumer segment primarily consists of the manufacture and sale of carbon cloth. On March 31, 2011 the Company completed the acquisition of Calgon Carbon Japan KK (CCJ).

Activated Carbon and Service

The sale of activated carbon is the principle component of the Activated Carbon and Service business segment. Activated carbon is a porous material that removes organic compounds from liquids and gases by a process known as adsorption. In adsorption, unwanted organic molecules contained in a liquid or gas are attracted and bound to the surface of the pores of the activated carbon as the liquid or gas is passed through. The primary raw material used in the production of the Company�� activated carbons is bituminous coal which is crushed, sized and then processed in low temperature kilns followed by high temperature furnaces. The Company also markets activated carbons from other raw materials, including coconut shell and wood. The Company produces and sells a range of activated, impregnated or acid washed carbons in granular, powdered or pellet form. Granular activated carbon (GAC) particl! es are irregular in shape and generally used in fixed filter beds for continuous flow purification processes.

Another component of the Activated Carbon and Service business segment are the optional services associated with supplying the Company�� products and systems required for purification, separation, concentration, taste and odor control. The Company offers a variety of treatment services at customer facilities, including carbon supply, equipment leasing, installation and demobilization, transportation and spent carbon reactivation. Other services include feasibility testing, process design, performance monitoring and maintenance of Company-owned equipment. The central component of the Company�� service business is reactivation of spent carbon and re-supply. The Company provides reactivation/recycling services in packages ranging from a 55 gallon drum to truckload quantities.

Equipment

Along with providing activated carbon products, the Company has developed a portfolio of standardized, pre-engineered, adsorption systems capable of treating liquid flows from 1 gallons per minute to 1,400 gallons per minute, which can be delivered and installed at treatment sites. These self-contained adsorption systems are used for vapor phase applications, such as volatile organic compound (VOC) control, air stripper off-gases, and landfill gas emissions. Liquid phase equipment systems are used for applications of potable water, process purification, wastewater treatment, groundwater remediation and de-chlorination. The Company produces a range of odor control equipment, which typically utilizes catalytic activated carbon to control odors at municipal wastewater treatment facilities and pumping stations. The Company�� variety of equipment systems treats the odors that emanate from municipal wastewater treatment facilities and the sewage collection systems that bring the waste to the treatment plant.

The ISEP (Ionic Separator) continuous ion exchange units ! are used ! for the purification and recovery of many products in the food, pharmaceutical, and biotechnology industries. The ISEP Continuous Separator units perform ion exchange separations using countercurrent processing. The ISEP and CSEP (chromatographic separator) systems are used at over 300 installations worldwide in more than 40 applications in industrial settings, as well as in environmental applications, including perchlorate and nitrate removal from drinking water. The Hyde GUARDIAN System was developed as a chemical-free, International Maritime Organization (IMO) type approved, ballast water management solution. The system is designed to meet the needs of ship owners to install treatment system.

Consumer

The primary product offered in the Consumer segment is carbon cloth. Carbon cloth, which is activated carbon in cloth form, is manufactured in the United Kingdom and sold to the medical, military, and specialty markets. Zorflex Activated Carbon Cloth can be used in numerous additional applications, including sensor protection; filters for ostomy bags; wound dressings; conservation of artifacts, and respiratory masks.

The Company competes with Norit, N.V., Mead/Westvaco Corporation, Siemens Water Technologies, Trojan Technologies, Inc., Xylem, Wedeco Ideal Horizons, Panasia, Alfa Lavel Tumba AB, Hyde Marine, Inc. and Wartsila.

Advisors' Opinion:

• [By Inyoung Hwang]

  Computacenter Plc (CCC) slipped 4.5 percent to 543 pence, its biggest drop since June. UBS AG lowered the technology-services provider to neutral from buy, citing its valuation. The shares have climbed to 13.18 times estimated earnings from 11.81 times at the end of last year, according to data compiled by Bloomberg.

• [By Aaron Levitt]

  Calgon Carbon Corporation (CCC) is one of the largest manufacturers of activated carbon and filtration systems in the world, with activated carbon capacity of around 75,000 tons per year. That�� a good position to be in, as carbon filters are some of the most effective methods at removing chlorine, sediment and other volatile organic compounds from wastewater. They are also one of the cheapest methods for utilities to implement.

Best Chemical Stocks To Watch For 2014: AZ Electronic Materials SA (AZEM)

AZ Electronic Materials SA is a producer and supplier of specialty chemical materials. AZ operates in four segments: IC Materials, which includes products for use in integrated circuits and devices; Optronics, which includes products used in the production of flat panel displays for use in televisions, computer monitors and similar equipment and light emitting diode technology; Printing and Other, which includes printing and similar products used in photo lithographic processes, and Corporate. The Company�� products enable the manufacture of integrated circuits (ICs) and flat panel displays (FPDs) that are integral to a range of electronic devices and applications, including computers and tablet devices, flat screen televisions, mobile communication devices, industrial and automotive applications and the developing light and energy markets. Advisors' Opinion:

• [By Corinne Gretler]

  AZ Electronic (AZEM) surged 43 percent, the most since its at least November 2010, after Merck on Dec. 5 said it had agreed to buy the company for about 1.6 billion pounds. Merck added 0.4 percent. Shareholders will get 403.5 pence for each share, Merck said. The price is 53 percent above the Dec. 4 closing level in London trading.

Best Chemical Stocks To Watch For 2014: American Vanguard Corp (AVD)

American Vanguard Corporation, incorporated on January 2, 1969, operates as a holding company. The Company is primarily a chemical manufacturer that develops and markets products for agricultural and commercial uses. The Company manufactures and formulates chemicals for crops, human and animal protection. The Company conducts its business through its subsidiaries, AMVAC Chemical Corporation (AMVAC), GemChem, Inc. (GemChem), 2110 Davie Corporation (DAVIE), Quimica Amvac de Mexico S.A. de C.V. (AMVAC M), AMVAC de Costa Rica Sociedad Anonima (AMVAC CR), AMVAC Switzerland GmbH (AMVAC S), AMVAC do Brasil Representacoes Ltda (AMVAC B), AMVAC Chemical UK Ltd. (AMVAC UK), AMVAC CV (AMVAC CV), AMVAC Netherlands BV (AMVAC BV), and Envance Technologies, LLC (Envance). In July 2012, the Company completed the restructuring of the International Sales & Marketing function of its principal operating subsidiary, AMVAC Chemical Corporation. On November 30, 2012, AMVAC and TyraTech, Inc. formed Envance Technologies, LLC, in which the Company owns 60% of the equity interest. In July 2012, the Company formed AMVAC CV and AMVAC BV.

AMVAC is a chemical manufacturer that develops and markets products for agricultural and commercial uses. It manufactures and formulates chemicals for crops, human and animal health protection. These chemicals, which include insecticides, fungicides, herbicides, molluscicides, growth regulators, and soil fumigants, are marketed in liquid, powder, and granular forms. AMVAC owns and/or operates the Company�� domestic manufacturing facilities and is also the parent company for all its foreign companies. DAVIE owns real estate for corporate use.

GemChem is a national chemical distributor. GemChem, in addition to purchasing key raw materials for the Company, also sells into the pharmaceutical, cosmetic and nutritional markets. GemChem is a wholly owned subsidiary of AVD.

Advisors' Opinion:

• [By Travis Hoium]

  What: Shares of specialty chemical maker American Vanguard (NYSE: AVD  ) fell 17% today after cautioning about second-quarter earnings.

• [By Seth Jayson]

  Margins matter. The more American Vanguard (NYSE: AVD  ) keeps of each buck it earns in revenue, the more money it has to invest in growth, fund new strategic plans, or (gasp!) distribute to shareholders. Healthy margins often separate pretenders from the best stocks in the market. That's why we check up on margins at least once a quarter in this series. I'm looking for the absolute numbers, so I can compare them to current and potential competitors, and any trend that may tell me how strong American Vanguard's competitive position could be.

• [By Eric Volkman]

  Investors in American Vanguard (NYSE: AVD  ) will be receiving dividends twice as frequently as in the past. The company announced Monday that is has launched quarterly distributions with a $0.05-per-share payout, to be paid July 19 to shareholders of record as of July 5.

• [By Seth Jayson]

  Calling all cash flows
  When you are trying to buy the market's best stocks, it's worth checking up on your companies' free cash flow once a quarter or so, to see whether it bears any relationship to the net income in the headlines. That's what we do with this series. Today, we're checking in on American Vanguard (NYSE: AVD  ) , whose recent revenue and earnings are plotted below.