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Best Stocks for 2019: LyondellBasell Will Take the Crown

The following is an excerpt from Best Stocks for 2019: LyondellBasell Stock Will Take the Crown. LyondellBasell is my selection in InvestorPlace’s Best Stocks for 2019 Contest.

My pick in Best Stocks for 2019 is LyondellBasell (LYB), one of the largest plastics, chemicals and refining companies in the world. It’s also one of the cheapest stocks in the S&P 500, has strong insider buying, and has a fantastic history of taking care of its shareholders via dividend hikes and well-timed share repurchases.

If you’re not familiar with the company, LYB produces everything from food packaging to water pipes and auto parts. Additionally, the company is one of the largest crude oil refiners in the United States and produces gasoline, diesel fuel, jet fuel and assorted lubricants. The company sells its products in more than 100 countries and made the 2018 list of “Most Admired Companies” by Fortune magazine.

Energy stocks have been beaten up of late due to the falling price of crude oil. With global demand looking suspect and suppliers stronger than ever, the price of crude oil is down by about a third since the beginning of October.

But that’s hardly a bad thing for LyondellBasell. Lower prices for crude oil and natural gas liquids means lower cost of feedstock for the chemicals and refining businesses and thus higher profits.

Not that profits have been in short supply. Over the past five years, LyondellBasell stock has averaged a return on equity of nearly 60%. Net margins fluctuate based on the economic cycle but have averaged in the mid-teens since 2015. Over the trailing 12 months, net margins have held steady at 15.01%.

Despite its financial health, it’s hard to find too many large-cap stocks that are as cheap as LYB stock. The company trades at a trailing price-to-earnings ratio of just 6.02 and a forward P/E of just 8.05. Compare that to the S&P 500’s trailing and forward P/E ratios of 21.98 and 15.1, respectively.

To continues reading, see Best Stocks for 2019: LyondellBasell Stock Will Take the Crown.

Disclaimer: This material is provided for informational purposes only, as of the date hereof, and is subject to change without notice. This material may not be suitable for all investors and is not intended to be an offer, or the solicitation of any offer, to buy or sell any securities nor is it intended to be investment advice. You should speak to a financial advisor before attempting to implement any of the strategies discussed in this material. There is risk in any investment in traded securities, and all investment strategies discussed in this material have the possibility of loss. Past performance is no guarantee of future results. The author of the material or a related party will often have an interest in the securities discussed. Please see Full Disclaimer for a full disclaimer.

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Friday Humor: What Is Bitcoin?

I know Bitcoin is back to over $10,000, but this is still hilarious.

Disclaimer: This material is provided for informational purposes only, as of the date hereof, and is subject to change without notice. This material may not be suitable for all investors and is not intended to be an offer, or the solicitation of any offer, to buy or sell any securities nor is it intended to be investment advice. You should speak to a financial advisor before attempting to implement any of the strategies discussed in this material. There is risk in any investment in traded securities, and all investment strategies discussed in this material have the possibility of loss. Past performance is no guarantee of future results. The author of the material or a related party will often have an interest in the securities discussed. Please see Full Disclaimer for a full disclaimer.

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I Deleted Twitter From My Phone Today…

I deleted the Twitter app from my phone this morning.

This isn’t a political statement and has nothing to do with the constant spew of pro- and anti-Trump bile that seems to dominate social media these days. (Ok, I can’t say it has nothing to do with it, but let’s just say the political rants were a secondary concern.)

And I didn’t shut down my Twitter feed entirely (unlike Facebook, which I happily canned about two years ago). I simply removed it from my phone. I can still read and post by logging in on my PC, and there are still a handful of good, insightful feeds I like to read.

But it’s gone from my phone, and good riddance. By making Twitter harder to access, I’m guaranteed to use it less.

So, what’s prompted my sudden lurch into Luddism?

I want my life back.

This started a little over two years ago when I realized I had wasted the better part of a work day looking at pictures of people I hadn’t seen in 20 years on Facebook. I barely cared about the people 20 years ago, and I certainly didn’t care any more about them as I was clicking on their photos. Yet I wasted a day I can never have back looking at pictures of people I kinda knew 20 years ago who haven’t aged well.

Along with the unflattering photos were the political rants. Political rants, in moderation, are fine among old friends with similar views. But your grandmother knew what she was talking about when she told you not to discuss politics and religion at the dinner table. It causes unnecessary friction, it makes people uncomfortable and it can do damage to friendships for no good or justifiable reason. You really see people at their worst when they talk politics… and I don’t need to waste another moment of my life reading self-righteous political rants from people I barely know or might not know at all.

I have young children at home. I want them to actually know their father. I want them to see my face, with my eyes making contact and with my mouth smiling. I don’t want their memory of me when I’m gone to be that of me stooped over a smartphone with my face in a scowl. My sons deserve better than that.

I don’t get to spend as much time as I would like with them. At this stage in my career, I am by necessity something of a workaholic, and I have to travel more than I’d like. So when I’m around, I need to actually be around, and not fidgeting with my phone.

I’m not throwing my phone in the dumpster… at least not yet. That day might still come. But I’m making an effort to curtail the time I spend on it. It’s addictive, and I don’t like that. I hate that I feel that split second of panic when I don’t feel my phone in my pocket… or that I find myself compulsively reaching for it.

That’s the worst aspect. I’ve never been addicted to a substance, but I’ve always looked down on smokers that compulsively paw at their packet of cigarettes. I feel myself doing that with my smartphone, and I hate it. 

So, Twitter had to go.

Like any junkie, I’ll feel withdrawal pangs. But once they pass, I can’t imagine I’ll miss it.

 

 

Disclaimer: This material is provided for informational purposes only, as of the date hereof, and is subject to change without notice. This material may not be suitable for all investors and is not intended to be an offer, or the solicitation of any offer, to buy or sell any securities nor is it intended to be investment advice. You should speak to a financial advisor before attempting to implement any of the strategies discussed in this material. There is risk in any investment in traded securities, and all investment strategies discussed in this material have the possibility of loss. Past performance is no guarantee of future results. The author of the material or a related party will often have an interest in the securities discussed. Please see Full Disclaimer for a full disclaimer.

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On Straight Talk Money: Applying Baseball Wisdom to Investing

I joined Peggy Tuck on Straight Talk Money this morning, and we had a blast applying the wisdom of baseball to investing. Hope  you have as much fun with it as we did.
 
 


 
 

  

Disclaimer: This material is provided for informational purposes only, as of the date hereof, and is subject to change without notice. This material may not be suitable for all investors and is not intended to be an offer, or the solicitation of any offer, to buy or sell any securities nor is it intended to be investment advice. You should speak to a financial advisor before attempting to implement any of the strategies discussed in this material. There is risk in any investment in traded securities, and all investment strategies discussed in this material have the possibility of loss. Past performance is no guarantee of future results. The author of the material or a related party will often have an interest in the securities discussed. Please see Full Disclaimer for a full disclaimer.

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Today on Straight Talk Money: Bond Yields, Stop Losses and More

Photo credit: Sharon Lee

I joined Peggy Tuck and Chase Robertson today on Straight Talk Money. The first topic of discussion? What’s going on in the bond market?

 

In the next segment, we talk about financial stocks… and about a little trick John Templeton used to buy when everyone else was selling.

 

And in the last segment, we chat about the importance of stop losses… and keeping you stop loss orders private.

 
 
 

Disclaimer: This material is provided for informational purposes only, as of the date hereof, and is subject to change without notice. This material may not be suitable for all investors and is not intended to be an offer, or the solicitation of any offer, to buy or sell any securities nor is it intended to be investment advice. You should speak to a financial advisor before attempting to implement any of the strategies discussed in this material. There is risk in any investment in traded securities, and all investment strategies discussed in this material have the possibility of loss. Past performance is no guarantee of future results. The author of the material or a related party will often have an interest in the securities discussed. Please see Full Disclaimer for a full disclaimer.

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