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The Dow Chemical Company (DOW), Praxair, Inc. (PX): Interesting Investing Opportunity in These Chemical Companies

These two plants thus have a combined capacity of 270 million scfd of hydrogen. This will increase Praxair, Inc. (NYSE:PX)’s hydrogen production capacity in the U.S. by 25%. This increased capacity will increase the revenue of the company. The expected revenue for Praxair is $3 billion in the third-quarter of 2013, a growth of 8.2% quarter-over-quarter.

NuCO2 is a leading provider of beverage carbonation services to the U.S. restaurant industry. Praxair, Inc. (NYSE:PX) acquired NuCO2 from Aurora Capital Group in the first quarter of 2013 for $1.1 billion. The beverage carbonation solution provided by NuCO2 is popular with restaurants and convenience stores which offer fountain beverages. 85% of NuCO2’s business is in the top 100 restaurant chains. This acquisition will help Praxair provide nitrogen generation and blending control systems to companies selling draught and craft beers. These products improve beer’s consistency and reduce wastage. It is expected that NuCO2 will generate EBITDA of around $115 million and revenue of $250 million in 2013.

Conclusion

The Dow Chemical Company (NYSE:DOW) has received cash for arbitration charges, which it will use to pay off part of its debt. Its joint venture, Sadara Chemical, should be a revenue driver in the long-term.

DuPont’s new production facility will help the company increase seed production in Ukraine. Rynaxypyr and Cyazypyr will have huge sales potential in the long-term.

Praxair, Inc. (NYSE:PX)’s two hydrogen production plants will increase its hydrogen production capacity in the U.S. by 25%. The NuCO2 acquisition will help Praxair enter into the nitrogen generation and blending control systems market.

All three of these stocks are a buy.

The article Interesting Investing Opportunity in These Chemical Companies originally appeared on Fool.com and is written by Madhu Dubey.

Madhukar Dubey has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Madhu is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

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