Blogvesting

I took advantage of the market upswing today to liquidate a few positions that I feel are near their fair value. First up on the chopping block is Methanex, which supplies 20% of the world’s methanol, used mainly in the chemical industry. I first bought MEOH on August 2007, and my investment thesis was that the restart of Methanex’s Chile plants would be immediately incremental to earnings, and that a dominant industry company was being unfairly valued due to the low methanol spot price. However, after a most eventful year, I think that the US demand for methanol is likely to drop significantly, and global demand for chemicals is likely to satiated by upcoming methanol plants in Egypt and China. Hence, I sold the last of my position in MEOH at $25.50, for a gain of 15%.