Industries – Chemicals: Second 2013
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Industries – Chemicals: Second 2013

Reclaiming the second tier after slipping to No. 3 last year is Barclays’s Mikiya Yamada, whose outlook on the sector is mixed.

Mikiya Yamada

Barclays

Reclaiming the second tier after slipping to No. 3 last year is Barclays’s Mikiya Yamada, whose outlook on the sector is mixed. He is cautious on companies that produce chemicals for electronics manufacturers, citing weak demand for semiconductor silicon wafers, but upbeat about the prospects for outfits with more-varied product lines. “In January we reconfirmed our view that diversified chemicals stocks are trading at levels that largely factor in the slump by petrochemicals prices from July through September 2012,” Yamada explains. His top pick is Nippon Shokubai Co. — an Osaka-based maker of acrylic acids, automobile catalysts, resins and other products — whose share price plunged following a deadly explosion at its Himeji facility in late September. Investors oversold the stock, the researcher believes, but the shares “should post gains as accident-related concerns about shareholder-value erosion fade.” The company has financial strength, a dominant market position and a diversified product mix, Yamada adds. “His industry background differentiates him from many other analysts,” marvels one advocate. — Leslie Kramer


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