Ticker: LYB, Buy below $75.

LyondellBasell  is one of the largest plastics, chemicals and refining companies in the world.

Why I Would Buy

1. Cheap – LyondellBasellcurrently sells at 7x trailing and forward earnings.   
2. Return on Equity – LYB has maintained a RoE in excess of 40%for past 5 years!
3. Dividend – 5%+ yield.
4. Credit Ratings – Investment grade credit ratings: Baa1/BBB+
5. Low Dividend Payout – Less than 30% of earnings paid out as dividends.

What Could Go Wrong

1. High COGS – Incredibly high COGS, approaching80%. Any increase in cost of raw materials will eat into profits.
2. Decline In Income – MRQ net income slid down significantly (39%+) y-o-y.

Disclosure: I am long LYB, please read additional disclosures here before taking any action based on this post.