Market Runner: Methanex Corporation (USA) Has Another Very Weak Trading Session Recording a Gap Down

Market Runner: Methanex Corporation (USA) Has Another Very Weak Trading Session Recording a Gap Down

The stock of Methanex Corporation (USA) (NASDAQ:MEOH) gapped down by $0.32 today and has $31.88 target or 9.00% below today’s $35.03 share price. The 9 months technical chart setup indicates high risk for the $3.13B company. The gap down was reported on Oct, 4 by Barchart.com. If the $31.88 price target is reached, the company will be worth $281.70M less.
Gaps down are helpful for identifying a resistance level and to could also be used as a tradeable event. If traders are short the stock and it experiece gap down, then its usually advisable to hold the short for a bigger down move. Back-tests of such patterns show that two-thirds of the these patterns the stock performance worsens after the gap. The area gaps close 91% of the time, the breakaway gaps 1%, the continuation gaps 9% and the exhaustion gaps 64%. The stock decreased 1.82% or $0.65 during the last trading session, hitting $35.03. About 915,912 shares traded hands. Methanex Corporation (USA) (NASDAQ:MEOH) has risen 9.50% since March 1, 2016 and is uptrending. It has underperformed by 2.71% the S&P500.

Analysts await Methanex Corporation (USA) (NASDAQ:MEOH) to report earnings on October, 26. They expect $-0.18 earnings per share, down 133.33% or $0.72 from last year’s $0.54 per share. After $-0.26 actual earnings per share reported by Methanex Corporation (USA) for the previous quarter, Wall Street now forecasts -30.77% EPS growth.

Methanex Corporation (USA) (NASDAQ:MEOH) Ratings Coverage

Out of 10 analysts covering Methanex Corporation (NASDAQ:MEOH), 7 rate it a “Buy”, 0 “Sell”, while 3 “Hold”. This means 70% are positive. Methanex Corporation has been the topic of 30 analyst reports since July 27, 2015 according to StockzIntelligence Inc. As per Friday, August 7, the company rating was maintained by Jefferies. The rating was maintained by Cowen & Co on Tuesday, November 24 with “Buy”. The firm has “Sell” rating by Scotia Capital given on Monday, September 21. As per Thursday, March 24, the company rating was downgraded by TD Securities. On Wednesday, September 9 the stock rating was maintained by Cowen & Co with “Outperform”. Raymond James upgraded Methanex Corporation (USA) (NASDAQ:MEOH) rating on Wednesday, March 2. Raymond James has “Outperform” rating and $40 price target. The firm has “Strong Buy” rating by Raymond James given on Tuesday, May 17. Citigroup downgraded Methanex Corporation (USA) (NASDAQ:MEOH) on Monday, March 14 to “Hold” rating. On Wednesday, August 5 the stock rating was maintained by Jefferies with “Buy”. On Monday, December 14 the stock rating was downgraded by Raymond James to “Mkt Perform”.

According to Zacks Investment Research, “Methanex Corp. is a Vancouver based company engaged in the worldwide production and marketing of methanol. Methanol, made from natural gas, is a basic chemical building block used to manufacture products such as formaldehyde, MTBE, acetic acid and others. The Company operates production facilities in Canada, the United States, New Zealand and Chile. The Company also markets additional methanol from plants in the US, Trinidad and Europe.”

More recent Methanex Corporation (USA) (NASDAQ:MEOH) news were published by: Benzinga.com which released: “Raymond James Downgrades Methanex Amid Upturn In Methanol Prices” on October 03, 2016. Also Fool.ca published the news titled: “Methanex Corporation Is Down 30% in 30 Days: Is This the Bottom?” on February 02, 2016. Benzinga.com‘s news article titled: “8 Biggest Price Target Changes For Monday” with publication date: October 03, 2016 was also an interesting one.

MEOH Company Profile

Methanex Corporation, incorporated on March 5, 1992, is a producer and supplier of methanol to a range of international markets in North America, Asia Pacific, Europe and South America. The Firm operates production sites in Canada, Chile, Egypt, New Zealand, the United States, and Trinidad and Tobago. The Company’s global activities are supported by a global supply chain of terminals, storage facilities and a fleet of methanol ocean tankers. The Company’s global supply chain and distribution network provides its clients with supply of methanol. The Company’s subsidiary, Waterfront Shipping Company Limited, operates its fleet, which is made up of approximately 20 vessels ranging from 3,000 to 50,000 deadweight tons of capacity. It has over three production facilities in New Zealand that supply methanol primarily to clients in Asia Pacific. The Firm operates over two plants in Trinidad, Titan and Atlas, which supply methanol to markets in North America, Europe, Asia Pacific and South America.

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