Because our stock market crystal ball on all of this is still pretty hazy, we are once again suggesting that you focus on the larger players with the stronger balance sheets. Many of the smaller, more leveraged miners and metals producers may not survive if commodity prices stay low for a prolonged period.
The Dow Chemical Company (NYSE: DOW) announced that it has signed a definitive agreement under which AgroFresh, its post-harvest specialty chemical business, will be acquired by Boulevard Acquisition Corp. (NASDAQ: BLVD, BLVDU, BLVDW), a public investment vehicle, formed by Avenue Capital Group, for $860 million, or 9.2x EBITDA multiple based on 2014 earnings.
Freeport-McMoRan (NYSE: FCX) reported a net loss attributable to common stock of $2.5 billion, $2.38 per share, for first-quarter 2015, compared with net income attributable to common stock of $510 million, $0.49 per share, for first-quarter 2014.
Builders FirstSource’s (NASD: BLDR) shares rose sharply on the 13th following news of its making an all cash, $1.63 billion, acquisition of ProBuild Holdings, a deal that will create a more than $6 billion revenue company.
Investors have found many things to dislike about banks, such as increasing regulation and low lending margins in these days of miniscule interest rates. I think the banks may be about to fare better, making them one of the few sectors that look cheap in the current market.
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