CC Definitely a falling knife, with analysts, now that the horse is out of the barn, cutting price
targets. Is it a value stock here somewhere?
Seems some clean up costs and a fight with DuPont weighing heavily on The Chemours Co. Insider buying ( some bigly )has not helped.
Majority of chemical companies down 35%/40%. CC down 72%.
A blurb from Greenlight Capital on July 25th, when the stock was $19.
Now little more than half their avg. price:
"We think a lot of bad news is priced in," says Einhorn of Chemours, noting the stock peaked
at $57 two years ago, and Greenlight's average entry of $23.18.
Cranston, Mary B., DIR Bought 08/07 1,790 $13.99 Direct, Buy
Snell, E. Bryan, OFF Bought 08/06 12,000 $13.77 Direct, Buy
Shelton, David C., SEC Bought 08/05 15,000 $13.82 Direct, Buy
Vergnano, Mark P., CEO Bought 06/10 44,000 $23.17 Direct, Buy
Kelliher, Susan M., SR VP Bought 05/17 6,500 $23.06 Direct, Buy
Cranston, Mary B., DIR Bought 05/16 1,044 $23.91 Direct, Buy
A little from their latest call: seekingalpha.com
Turning to the next chart. We are revising our guidance for the full-year 2019 to reflect the
second quarter results and our view that a second half recovery is less likely. We are reducing
our adjusted EBITDA guidance to a range of $1 billion to $1.15 billion, EPS to $2.37 to $3.08
per share and free cash flow to approximately $100 million.
_____________________________________________________________________________________________
Turning to the next page. As you know, we are currently engaged in a lawsuit with our former
parent DuPont and to Chancery Court of the State of Delaware. While I believe that the complaint
speaks for itself. I wanted to clear up a few misconceptions about the lawsuit, which we been
hearing.
As to the claims asserted DuPont continues to contend that it is entitled to unlimited indemnity
from Chemours for many of its historic liabilities, including those which they recently passed
to court [indiscernible].
The law suit request that the Chancery Court and a declaratory judgment limiting DuPont
indemnification rights against Chemours to those actual high and maximum realistic exposures
DuPont established for Chemours at spin or in the alternative return the approximately $4
billion dividends it extracted from Chemours premised upon those maximums.
Some have implied that the lawsuit speaks to our insolvency. This could not be further from the
truth. The allegations of the complaint were directed to the timing of the spin off, not the
present. Nowhere in the complaint is it alleged that Chemours currently fears insolvency,
because we do not.
All of our accruals are taken in accordance with the appropriate accounting standards. Thanks to
the tremendous efforts of our employees and difficult choices we were forced to make as a result
of the financial condition DuPont left us in at the time of the spinoff, our Company is on solid
financial footing as reflected in our filings. |
