IYM News and Press, iShares U.S. Basic Materials From 08/11/22

We do not expect the copper price to fall below $6500/ton with the onset of recession. The main reason is the current raw material price (~$7300/ton) removing ~30% of the potential copper supply from the market. We expect the current decline of copper price to catch up quickly by the ...

Celanese has been a regular in the M&A space at least over the last 10 years and continued to grow. The latest acquisitions (especially M&M from DuPont), however, change the color of its balance sheet with substantially higher leverage. The product portfolio being acquired...

When the year started, Dow saw a desirable outlook for shareholder returns. Their underlying cash flow performance increased over 50% year-on-year during the first half of 2022, which also saw guidance pushed up. Despite this stronger than expected financial performance, Dow's div...

Dow is a diversified chemical company with a global footprint and solid profitability. Management is being disciplined with its cash flow by paying down debt and returning cash to shareholders via share buybacks and dividends. Its beaten down share price makes it a cyclical stock ...

Price increases and strong demand for Valvoline’s products and services drove revenue growth for the company in fiscal 2Q22. Valvoline’s retail presence drives strong same-store sales. The company’s same-store sales have grown year-over-year in 15 consecutive year...

Freeport-McMoRan is a copper company, and copper is susceptible to economic closures and economic worry. The company has dramatically improved its financial position from the last downturn, and we expect markets to rebound quickly. The company can generate double-digit FCF in 2023...

IYM offers exposure to a basket of principally large-cap stocks from the GICS materials and industrials sectors. Basic materials players have been in the limelight earlier this year as persistent inflation maintained its tight grip. I warn investors against extrapolating the fund'...

Nucor has sold off by more than 30% in the last few months. While the investment has many moving parts, the ultimate driver here is that the stock is cheap. If 2023 sees steel prices weaken substantially, the stock could end up priced at 10x free cash flow. That's not such a bad outco...

Alcoa is facing a tough market, affected by inflationary pressures and the associated interest rate increases. The company has made good steps in controlling their production cost and is transitioning rapidly into "greener" aluminum products. Despite aluminum prices expected to fa...

iShares U.S. Basic Materials ETF (IYM) - $0.8255. 30-Day SEC Yield of 1.59% as of April. 29. Payable Jun 15; for shareholders of record Jun 10; ex-div Jun 09. For further details see: iShares U.S. Basic Materials ETF declares quarterly distribution of $0.8255