From a recent Mad Money show:

"This stock has been so cheap for so long I don't know what to say. I can't get behind it. This group is hard, let's just go with DuPont (DD) or Dow Chemical (DOW)."

Methanex Corp. said recently it plans to repurchase up to 7.9 million shares, or about 10 percent of its outstanding stock.

It also has approved an 11 percent increase in its quarterly dividend, to 15.5 cents from 14 cents.

Chief Executive Bruce Aitken cited the dividend increase recently as he complained the market has long underestimated the company's value as a cash generator. It was the sixth hike since Methanex began paying dividends in 2002.

The company has also suffered from a perception that methanol prices are bound to fall in the long term, but that has not panned out in part because energy prices make it difficult for new producers to enter the market, he said.

"It's always methanol prices are great this year, but not so good next year, and terrible in the future," Aitken told the company's annual meeting in Vancouver as he dismissed the critics.

Methanex is the world's largest producer of methanol, an alcohol used as a base chemical to produce a variety of products, including fuel additives.

The quarterly dividend will rise to 15.5 cents a share from 14 cents, the company said, adding the increase will apply starting with the dividend payable on June 30.

The stock trades for 5x cash flow.

11%

From a recent Mad Money show:

"This stock has been so cheap for so long I don't know what to say. I can't get behind it. This group is hard, let's just go with DuPont (DD) or Dow Chemical (DOW)."

NASDAQ

Long Term

Methanex (MEOH) was upgraded from Underperform to Sector Perform, CIBC said. Valuation call, as the stock has pulled back 20% in the past month. $23 price target.

Potential acquisition play sometime in the future perhaps...

Upgraded by UBS from Reduce to Neutral

One is Methanex (MEOH), which is a single-play, single-commodity, specialty chemical company that shouldn't be an independent firm. There's no reason in the world for this company to be a stand-alone play. Methanex produces methyl tertiary-butyl ether (MTBE), a formerly widely used gasoline additive that has been banned in the U.S. completely. That ban has driven the price of MTBE from $1.80 down to $1.00 a gallon.

Methanex is the world's leader in this single product, selling at nine times expected 2008 earnings. That is an earnings yield of more than 10%. They have no defenses against a takeover. This is an easy company for a bigger chemical company to buy and fold. It's got a $4.5 billion market valuation. It's completely bite-size; I don't think the company will going to exist two years from now.

fundamentals