Braskem S.A. (ADR) (NYSE:BAK)

Bought Top Notch Dow Assets Cheap and Price Depressed.

Play on South American PVC.

biodegradable plastic

Forward P/E suggests that Braskem will be worth $25 per share by the end of 2012. Throw in a 13% dividend yield and I think you have a compelling case to thumb up Braskem. The demand for pretrol products in Brazil is only going to grow as they continue to develop. Yes, they are becoming more and more dependent on Ethanol produced from sugar cane, but I think that good 'ole petrol is still the cheaper alternative and will continue to see demand growth.

It's a great company, growing market but need to be patient. This is a winner in a long term (1-2 years).

BlindLuck32

200,000 tons a year...new capacity at this recently finished plant making GREEN ETHYLENE PLASTIC from..you guessed it, SUGAR! This is bio-degradable and the largest effort in the world. What a step forward! I just saw on TV last week on NOVA a special showing the plastics that were floating around the world waterways, washing up on beaches and spoiling the aquatic life, etc Hopefully Dow ,DuDont and others will follow suit.

steady growth, plastic alternative that is bio based

Growing global player, recommended by Louis Navalier.

High Divident Yield . Play in Brazil and Chemicals

brazil will drill even if we don't have the will

Simple dividend discount model says this stock is worth less than $1. Earnings are expected to fall over time significantly, and dividends will follow.

Dividend yield is great, though the record is a bit short. If they keep that up, this will be a winner. I'd like to hear the bear case on this stock, change my mind!

Bottom fishing. Don't know what I am doing.

While this is highly leveraged, it is probably trading at around the replacement cost for its assets.

Another solid Brazilian play. As the nation's economy continues to industrialize, the need for domestically produced specialty chemicals will as well.

Investing in bioplastics. Will benefit on both an oil correction and a real correction.

petrochemical play in red hot braziliam market

1. Braskem is the leading petrochemical producer in Brazil. It also happens to be the 3rd largest petrochemical producer in all of the Americas.
2. The acquisition of the Ipiranga Group Petrochemical Assests is estimated to bring in $1.1 billion. Braskem directly owns 60% in Ipiranga Quimica.
3. P/B close to 1 and a P/E that isn't outrageous that also shows room for growth.
4. This company will not directly be affected by the credit crunch that the U.S. is facing. We could see an indirect complications based on oil consumption from the U.S. if that goes down than profits may follow. Still, I feel confident about this company.