- LSB Industries (LXU +32.2%) is added to the Conviction List at Avondale Partners, which cites a likelihood of near term positive news and the potential for a rapid share price recovery as ammonia production is confirmed.
- The firm thinks that once El Dorado Chemical has some operating history, LSB likely will pursue a broad refinancing that could be bolstered by the coincident sale of its climate control business, which would reduce leverage and result in a stronger and more viable company.
- Avondale, which has an Market Outperform rating on the stock, says LSB is starting up the ammonia synthesis loop and activating catalysts and could begin ammonia production within two weeks.
- Shares are rebounding from yesterday's big loss after reporting a larger than expected Q1 loss.