SA Transcripts • Sun, Nov. 9
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OCI Resources LP Not Really Cheap, But An Interesting MLP Nonetheless
- OCI Resources LP owns one of the lowest-cost producers of soda ash in the world.
- Distributions are well-covered by cash flow and the partnership has the debt capacity to consider further production expansions and/or acquisitions.
- Yielding over 8%, OCI Resources LP units are not strikingly cheap but do offer exposure to soda ash prices as they recover from cyclical lows.
Earn A 9%-Plus Yield With This Undervalued New High-Dividend Stock
- OCI Resources stated that it intends to pay a minimum $.50/unit quarterly distribution in 2014, a 9%=plus yield.
- As a natural soda ash producer, OCI Resources has a big cost advantage over synthetic producers.
- The global soda ash market has limited production capacity, which should support stable and growing demand.
OCI Resources - An MLP With A 9% Yield And Potential To Grow
- Growth in the global demand for soda ash and long-lived reserves makes OCI Resources a valuable business.
- The partnership trades at attractive EV/EBITDA and Price/DCF valuations.
- The 9.1% distribution is adequately covered and growth in the payout is possible.
- This MLP provides good diversification for an energy-heavy portfolio.
11% High Yielding OCI Resources Quiet Period Expiring
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OCIR vs. ETF Alternatives
OCI Resources LP was formed by OCI holdings to operate the trona ore mining and soda ash production business of OCI Wyoming. It owns controlling 40.98% general partnership interest and 10.02% limited partnership interest in OCI Wyoming.
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