Investopedia: Is It Time To Prepare For A Braskem Rebound?

The peculiar logic that goes with commodity company investing works a little something like this - Brazil's Braskem (NYSE:BAK) is near its 52-week lows, so investors should probably add it to their watch lists. The trouble with this approach, though, is illustrated by the recent troubles in the coal sector - buying near the lows is all well and good, but what do you do if and when the stocks keep digging out new lows?

Is a Rebound Coming?
The trouble with Braskem is a familiar one; sluggish demand has hurt volumes, while spreads have been exceptionally low. Even though Braskem has a commanding (two-thirds) share of the Brazilian chemicals market and is largely protected by the Brazilian government, there's not much to change the short-term reality that demand is sub-optimal and the company's costs are high.

Read more here:
http://stocks.investopedia.com/stock-analysis/2012/Is-It-Time-To-Prepare-For-A-Braskem-Rebound-BAK-DOW-SNP-XOM-DD0409.aspx