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Strategies & Market Trends : Fundamental Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: richardred who wrote (2063)	7/27/2012 3:24:01 PM
From: E_K_S	Read Replies (1) \| Respond to of 4719

Re: Huntsman Corporation (HUN) - A pass for me. Kronos Worldwide Inc. (NYSE: KRO) - Maybe a better choice based on my value view. Kraton Performance Polymers Inc. (NYSE: KRA) - Another possible choice w/ a better value at least to me. goo.gl I will pass on HUN. The company has too much debt for me. According to YAHOO 11x it's net annual income covers it LT debt of $3.8B. I like to see 4x or less. The company also is in a very cyclical industry (ie. specialty chemicals) so their EPS tend to fluctuate. 3 years out of the last seven were negative. EPS However, They do sell almost 55% below my modified EKS$ but the risk/reward is too high for me. BV is pretty flat too over the last five years at around $7.80/share. Some of the other potential undervalued companies in this sector that I like more include OMG, KRA & KRO. You also might want to look at CBT, CE, & DOW . Kraton Performance Polymers Inc. (KRA) -NYSE is also selling 52% below it's EKS$ value but has less debt. They have only had one negative EPS result in last four years (still not very good) but have been growing their BV. Both KRO and KRA would be my picks if we wanted to include something in the specialty chemical sector. EKS