Trinseo Stock (NYSE:TSE), Trade Ideas

Trinseo

Trinseo PLC is a materials company and manufacturer of latex and plastics products. The company's operating segments include latex binders, feedstocks, polystyrene, Americas styrenics, engineered materials, and plastics solutions. Majority of the revenue is generated from its Polystyrene segment which provides a variety of general purpose polystyrenes, and high impact polystyrene. These products provide customers with performance and aesthetics at a relatively low cost across applications, including appliances, packaging, including food packaging and food service disposables, consumer electronics and building and construction materials. Geographically, the company generates majority of the revenue from Europe and also has its presence in United States, Asia-Pacific and other regions.

News

Penny Stocks

Small Cap

Intraday Update

Markets

Movers

Trading Ideas

ANET

ARBB

ASPN

ATCH

BDRX

BGLC

Brighthouse Financial, Inc. - Common Stock

BIOL

BLKB

BRKR

CDNS

CHSN

DBGI

DHAI

EXAI

EXPR

FAMI

FREE

GTHX

IPGP

JBLU

LIAN

Larimar Therapeutics, Inc. - Common Stock

LRMR

MGIH

NSTG

PLCE

RENB

RNLX

SBFM

SIEN

SPWR

SSRM

TRIP

TWOU

VCIG

VGAS

ZJYL

Shares of  IPG Photonics Corporation (NASDAQ: IPGP) fell sharply during Tuesday’s session after the company reported mixed fourth-quarter financial results and issued soft first-quarter guidance.

Why IPG Photonics Shares Are Trading Lower By Around 11%? Here Are Other Stocks Moving In Tuesday&#39;s Mid-Day Session

Long Ideas

Insider Trades

Pre-Market Outlook

CHWY

OLMA

WFCF

Although U.S. stocks closed mostly higher on Monday, there were a few notable insider trades.

$6.9M Bet On This Healthcare Stock? Check Out These 4 Stocks Insiders Are Buying

Earnings

Eurozone

Commodities

Global

ATEN

PXLW

VINO

VVOS

U.S. stocks traded mixed toward the end of trading, with the Dow Jones index falling over 50 points on Wednesday.

The Dow traded down 0.24% to 32,924.47 while the NASDAQ rose 0.77% to 13,159.47. The S&amp;P 500 also rose, gaining, 0.15% to 4,235.65.

Nasdaq Rises 100 Points; RPM International Posts Upbeat Earnings

Trinseo PLC

Touchstone ETF Trust Touchstone Securitized Income ETF

Tower Semiconductor Ltd. - Ordinary Shares

Tower Semiconductor Ltd

Thai Stanley Electric (Thailand) PCL

<li>Raymond James believes that the key to predicting E&amp;P stock outperformance is PDP equity growth.</li>
<li> Stocks with strong PDP equity growth have significantly outperformed their peers during the commodity downturn.</li>
<li>The firm has created a five-point checklist to use to identify PDP equity growth.</li>

In a new report, Raymond James analyst Jeremy McCrea explained how conventional tools for assessing energy E&amp;P stocks typically miss the mark. Instead, McCrea used Raymond James&rsquo; five-point checklist to search for value among Canadian E&amp;P stocks.
<h3>Convention Isn&rsquo;t Working</h3>
According to McCrea, conventional metrics used by investors fail to effectively differentiate winners and losers when it comes to E&amp;P stocks. &ldquo;Common metrics such as payout ratios, CFPS, production growth rates, and valuation metrics (EV/DACF and 2P NAV Valuations) do not truly demonstrate the profitability of a business and the long-term share price performance,&rdquo; he added.
<bzrelatedlink>Related Link: <a href="http://www.benzinga.com/analyst-ratings/analyst-color/15/11/6008386/energys-down-cycle-has-officially-had-its-one-year-anniv">Energy's Down Cycle Has Officially Had Its One-Year Anniversary</a></bzrelatedlink>
<h3>The Alternative</h3>
Instead of conventional metrics, McCrea explained that PDP (Proved-Developed-Producing) Equity Value Creation is the best indicator of share price outperformance. In fact, over the past two years, stocks of companies with the largest increases in PDP equity value have risen 17 percent compared to the average 43 percent decline of the rest of the E&amp;P field.
<img alt="" src="/files/u81483/pdp.jpg" style="width: 480px; height: 242px;" />
<h3>Five-Point Checklist</h3>
To assess and compare E&amp;P names, Raymond James has developed a five-point checklist that captures the critical elements of PDP equity growth. The checklist includes the following five factors:
<ul>
<li>1. Management</li>
<li>2. Asset Economics</li>
<li>3. Growth/ROC</li>
<li>4. Leverage</li>
<li>5. Valuation</li>
</ul>

<h3>Top Stock Picks</h3>
By using this checklist, Raymond James analyzed the Canadian E&amp;P group and came up with the top stocks of the bunch. Among E&amp;P names on the Toronto Stock Exchange, Raymond James names <a href="https://www.google.com/finance?q=TSE%3AKEL&amp;ei=eSRjVrGlGMWJ2Aa89YTYDQ">Kelt Exploration Ltd.</a> and <a href="https://www.google.com/finance?q=TSE%3APPY&amp;ei=kyRjVsK4ApPQjAH5rqDwBg">Painted Pony Petroleum Ltd</a> as Strong Buys.
The firm rates the following TSX-listed stocks at Outperform:
<ul>
<li><a href="https://www.google.com/finance?q=TSE%3AARX&amp;ei=pCRjVsnhK8LejAGK1Ij4Cw">ARC Resources Ltd.</a></li>
<li><a href="https://www.google.com/finance?q=TSE%3ABNP&amp;ei=wCRjVsmdGMS52AbdkY_AAw">	Bonavista Energy Corporation</a></li>
<li><a href="https://www.google.com/finance?q=TSE%3ABNE&amp;ei=3CRjVqGVLZbCjAHkv6LgCQ">Bonterra Energy Corp.</a></li>
<li><a href="https://www.google.com/finance?q=TSE%3APSK&amp;ei=ICVjVqHyDtXLjAGW37awDA">PrairieSky Royalty Ltd.</a></li>
<li><a href="https://www.google.com/finance?q=TSE%3AYGR&amp;ei=JiVjVujWOcWJ2Aa89YTYDQ">Yangarra Resources Ltd.</a></li>
</ul>

Disclosure: The author holds no position in the stocks mentioned.
Image Credit: <a href="https://pixabay.com/en/charts-graphs-data-finance-macbook-925810/">Public Domain</a>

Analyst Color

Education

Technicals

Analyst Ratings

General

This Unconventional Metric Is The Key To E&P Outperformance

<a href="http://feedads.g.doubleclick.net/~a/hqUhoQapYicZHyENl5dUE7aMXg0/0/da"><img src="http://feedads.g.doubleclick.net/~a/hqUhoQapYicZHyENl5dUE7aMXg0/0/di" border="0" ismap="true" /></a> 
<a href="http://feedads.g.doubleclick.net/~a/hqUhoQapYicZHyENl5dUE7aMXg0/1/da"><img src="http://feedads.g.doubleclick.net/~a/hqUhoQapYicZHyENl5dUE7aMXg0/1/di" border="0" ismap="true" /></a>
<a href="http://www.barelkarsan.com/2008/08/security-analysis-chapters-37-and-38.html">For various reasons</a>, value investors are encouraged to use an average of several years worth of earnings as an estimate of a company's earnings power. But when a company grows quickly (e.g. through the acquisition of a competitor), average earnings are no longer representative of earnings power. In such cases, other methods of estimating a company's earnings may be more useful.<a name='more'></a>
Consider Canam Group (<a href="http://www.google.com/finance?q=TSE:CAM">CAM</a>), a company that went on a bit of a buying spree when the recession began. As competitors have been shutting down units to conserve cash, Canam has been strategically purchasing competitor plants at attractive prices. As many industries are currently at overcapacity, the benefits of these acquisitions won't be seen for years. But the costs of these acquisitions (i.e. the cash used to finance the purchases) are seen immediately. How does one value the fact that future earnings will be higher than past earnings?
One method applicable to manufacturing companies is based on a company's historical return on its fixed assets. If similar assets to the company's current assets have been purchased, the company may be expected to generate the same type of returns on those fixed assets that it generated over the last business cycle. Of course, this exercise only results in a starting point for estimating future earnings. Adjustments may have to be made based on the age of the assets acquired, their quality, and a whole slew of other factors (e.g. geography).
When times are good, companies will often fall over themselves in bidding wars to acquire potential targets or business units. Value investors realize, however, that the best time for companies to acquire such assets is when business conditions are poor (financing in general is hard to come by, there is overcapacity in many industries, and sellers are desperate to raise cash), due to the great price discounts that are available.
This recession has offered many companies with great balance sheets the opportunity for future growth at excellent prices. However, valuing these companies is a challenge. Using past, average earnings (as is often <a href="http://www.barelkarsan.com/2008/11/earnings-reversion-to-mean.html">advocated for value investors</a>) would be inadequate, since an acquiring company's earnings power is now greater than its past earnings have shown. Estimating earnings power based on a return-on-fixed-assets measure may provide better accuracy, leading to more profitable investment decisions.
In a similar vein, we have previously discussed using this method <a href="http://www.barelkarsan.com/2009/08/earnings-capacity-example.html">when a company has reduced its capacity</a> in this recession, as in this case, average earnings of the past would overestimate the company's earnings power.
Disclosure: Author has a long position in shares of CAM 
<div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/7294165939647321702-472038816173649878?l=www.barelkarsan.com' alt='' /></div>
<div class="feedflare">
<a href="http://feeds.feedburner.com/~ff/BarelKarsan?a=DKo9F5HwSsk:c8acbmXZYn8:qj6IDK7rITs"><img src="http://feeds.feedburner.com/~ff/BarelKarsan?d=qj6IDK7rITs" border="0" /></a> <a href="http://feeds.feedburner.com/~ff/BarelKarsan?a=DKo9F5HwSsk:c8acbmXZYn8:I97M6haO00k"><img src="http://feeds.feedburner.com/~ff/BarelKarsan?d=I97M6haO00k" border="0" /></a>
</div>
<img src="http://feeds.feedburner.com/~r/BarelKarsan/~4/DKo9F5HwSsk" height="1" width="1" />

Topics

Average Earnings Can Be Useless

Trinseo to seek sale of 50% stake in Americas Styrenics JV

Trinseo (TSE) has shared an update. Trinseo PLC has announced the initiation of a sale process for its 50% stake in the joint venture Americas Styr...

Trinseo Initiates Sale of Stake in Americas Styrenics JV

These Basic Materials stocks are trading higher:-FutureFuel Corp (FF) stock is trading at $6.93, a rise of $1.24, or 21.97%, on high volume.  Futurefuel Corp gets a Sentiment Score of Neutral from InvestorsObserver.  -Lithium Americas Corp (LAC) stock is trading at $6.21, an increase of $0.48, or 9.42%, on high volume.  Li

Basic Materials Stocks on the Move Thursday: FF, LAC, AUST, AREC, TSE, X, CNEY, GLT

These Basic Materials stocks are trading higher:-Austin Gold Corp (AUST) stock is trading at $1.36, a rise of $0.26, or 23.64%, on moderate volume.  Austin Gold Corp gets a Sentiment Score of Bearish from InvestorsObserver.  -Lithium Americas Corp (LAC) stock is trading at $7.04, a rise of $0.63, or 10.06%, on moderate vol

Basic Materials Stocks Making Moves Friday: AUST, LAC, USAP, NEWP, TMC, IAUX, TSE, LGO

These Basic Materials stocks are trading higher:-NovaGold Resources Inc (NG) stock is trading at $2.71, a gain of $0.13, or 5.25%, on low volume.  Novagold Resources Inc gets a Sentiment Score of Bearish from InvestorsObserver and receives an average analyst recommendation of Strong Buy with a price target of $8.29. Novago

Basic Materials Stocks Moving Tuesday: NG, SSRM, ASTL, MERC, TMC, BVN, TSE, METC

These Basic Materials stocks are trading higher:-REX American Resources Corp (REX) stock is trading at $57.37, a gain of $13.5, or 30.77%, on high volume.  Rex American Resources Corp gets a Sentiment Score of Very Bearish from InvestorsObserver and receives an average analyst recommendation of Strong Buy with a price targ

Basic Materials Stocks on the Move Thursday: REX, ATLX, TSE, HLP, CC, USAP, MTRN, ASPI

SA, DNMR and TSE are  among pre market gainers

PLG, TSE and NFGC are among materials movers

Commodity Roundup: Gold builds on record rally, oil falls at start of busy week

PLL, CENX and TSE are among materials movers

AREC

ASPI

ASTL

ATLX

AUST

CENX

CNEY

CORN

CPER

CRML

DNMR

FEAM

FMST

GDXJ

HGAS

IAUX

IONR

MERC

METC

MTRN

NEWP

NFGC

NTIC

NUGT

PAAS

PALL

PHYS

PSLV

RETO

SOYB

USAP

USAU

WEAT

Press Releases

Trinseo Reports Third Quarter 2023 Financial Results and Updates 2023 Outlook

Trinseo Announces Quarterly Dividend of $0.01 Per Share

New Trinseo PMMA Depolymerization Plant Reimagines Plastics Value Chain With Sustainability In Mind

Trinseo Announces Release Date and Conference Call for its Fourth Quarter and Full Year 2023 Financial Results

Trinseo Reports Fourth Quarter and Full-Year 2023 Financial Results; Provides First Quarter 2024 Outlook

Trinseo Announces Commencement of Sale Process for Interest in Americas Styrenics

Trinseo Announces Potential Closure of Stade, Germany Virgin Polycarbonate Manufacturing Facility

Trinseo Introduces Groundbreaking Flame-retardant Plastic Grades Without Using PFAS Additives During Manufacturing Process

Trinseo Announces Release Date and Conference Call for its First Quarter 2024 Financial Results

AdvanSix

Braskem

Cabot

Core Molding Technologies Inc Common Stock

Core Molding Technologies

CN Energy Group Inc. - Class A Ordinary Shares

CN Energy Group

Crown Electrokinetics Corp. - Common Stock

Crown ElectroKinetics

Gulf Resources

Hawkins

Koppers Hldgs

Kronos Worldwide

Loop Industries

Mativ Holdings

Orion

Olin

Origin Materials, Inc. - Class A Common Stock

Origin Mat

PureCycle Technologies, Inc. - Common stock

PureCycle Technologies

Tantech Hldgs

Tronox Holdings

Westlake

Westlake Chemical Partners LP Common Units representing limited partner interests