Tristan R. Brown
Alternative energy, long/short equity, commodities, energy

Methanex Shares Are Priced As If The Methanol Market Won't Recover

Methanol producer Methanex (NASDAQ:MEOH) reported Q4 earnings late last month that nearly achieved the consensus EPS estimate despite missing solidly on revenue. Its share price set a new 3-year low in the wake of the report's release due to the negative outlook provided by management in the subsequent earnings call. The company, which produces methanol from natural gas for use in the fuels and chemicals markets, has seen its production margins fall sharply as petroleum prices have declined to a 7-year low.

In September, I summarized Methanex's worsening operating outlook before concluding that its share price at the time of $40 was likely to move lower in the short term; this followed a similar conclusion made

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