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Venator Materials PLC (VNTR)

NYSE - NYSE Delayed Price. Currency in USD
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1.9500+0.0500 (+2.63%)
At close: 04:00PM EDT
1.9900 +0.04 (+2.05%)
After hours: 07:41PM EDT
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  • L
    Lukas
    Snobr bought this stock with J&T ARCH INVESTMENTS.
  • t
    thomas
    Ugly day for VNTR. Thoughts?
  • M
    Mark
    36X daily volume and nobody has anything to say. Am I the only one that owns this stock?
  • C
    CHRIS
    Speculative Buy

    Here is why i own as a speculative play.

    This is a spin-off by Huntsman a few years ago. Came out around $20 and has been a disaster. Huntsman had until last Friday 52 million shares. So a huge overhang on stock.

    What changed?
    Friday was announced that SK capital will purchase 42.5 million shares from Huntsman at $2.35. Also have a 30 month option to buy the remainder at $2.15.

    SK runs about $5 billion I think. So small deal for them $120 million max. However, they specialize in chemical sector.

    So over hang gone. New money in who sees some type of value. Can push for changes at management level or introduce new strategic plan?

    This deal does not close until quarter four. Can’t imagine it doesn’t close. Huntsman gets $100 million cash and $150 million for the write off. Can turn the page on this disaster.

    Technicals.
    Stock has literally never traded above the 10 month moving avg since the spinoff. That stands at $2.32. So it is trying.

    Weekly chart looks like it is trying to build a nice reversal pattern and hopefully momentum to take out that monthly moving avg.

    Insiders have bought intermittently last two years.

    They have like 700 million in debt. But no big maturities due until 2024. So they have some time - if something goes right to weather the storm.

    That’s my 2 cents. Start buying $1.80 or so. My average is $2.
    Would consider more above $2.75.

    All the big Wall street names are on the earnings calls. You guys, Barclays, Goldman etc. no one likes it. But now story changed a little. Also, I think American Funds bought 2.8 million shares last quarter.

    I am initiating with $4 target. Speculative buy.
    Bullish
  • H
    HRK
    It is not been any easy for accumulating $VNTR, I typically only own few stocks for the longest time. My other significant one is $GSM where I spent almost 4 years from $7 to $0.39 cents, and all along I was confident for FerroGlobe to come back as I closely tracked its products/index. I'm now accumulating $VNTR from $5 to $2.67 so far and its only been few monhts here, I'm looking into holding this for several years to see it getting into $15 and above, meanwhile I will be adding the share counts while its lingering low.

    I did spend some time ging thru other significant TiO2 producers, and my take is $VNTR when looking at others that will return good on our investments in the coming years.
    Bullish
  • Y
    Yuri
    Some speculative thoughts:

    1) Given the 2024 / 2025 debt maturities, rising interest rates, and the fact that VNTR is not generating positive free cash flow, I expect a sale of the performance additives business or the entire business in the next two years. A sale of the performance additives business would likely bring net debt near zero (or at least a manageable figure). VNTR had $71M in interest expense in 2021. This would greatly help bring down interest expense.

    2) Net debt stands at $798M and market cap is at $233M. Based on reported 2021 EBITDA of $180M, the market assumes VNTR would sell for 5.7x EBITDA (debt + market cap divided by EBITDA). Or, 0.47x revenue. These are abnormally low figures. A strategic acquirer could strip out a good chunk of SG&A, plus TiO2 plants take years to build.

    Positive note on the shareholder litigation. "The Company has entered into settlement in principle with the plaintiffs, subject to completion and execution of definitive documentation and court approval. Substantially all of the Company’s payment obligations under the settlement as currently structured will be covered by insurance."

    Timing of the Tronox break fee. "A trial on the merits is expected to occur during the first half of 2022."
    Bullish
  • C
    CHRIS
    Still holding. Convincing myself that the dearth of volume is indicative of bottoming action.

    I, incorrectly, thought the SK investment at $2.35 would set a floor there for the stock. I guess the market will not price that until the deal actually closes.

    A question was asked on the CC if SK indicated to management that they saw some "low hanging fruit" to improve the company. The response was basically - not going to talk about that as the deal is not closed. VNTR indicated that they deal is still expected to close late this year.

    I believe a catalyst for upside price action will be if/when the deal closes and SK and management can begin to speak about their vision for the near/intermediate term. I would think that SK has some ideas for fairly rapid improvement. I also doubt they want a 15% haircut at the end of the year on their $2.35 purchase price.

    Also, lots of talk recently about the wide disparity in value vs. growth performance and how that may change moving forward. This week's Barron's the latest example.

    Still believe that patience will pay off here. Unless, of course, it's just stubbornness. GLTA
    Bullish
  • M
    Mark
    Venator Wins $75 Million Lawsuit Against Tronox
    By PR Newswire
    — 10:04 AM ET 04/06/2022
    WYNYARD, UK, April 6, 2022 /PRNewswire/ -- Venator Materials PLC (VNTR.NaE) ("Venator") today announced that the Superior Court of Delaware granted judgment as a matter of law in favor of Venator for $75 million and rejected Tronox's counterclaim for damages. The lawsuit arose from Tronox's refusal to pay a $75 million "Break Fee" from an agreement wherein the conditions for payment were met in 2019. The Superior Court decisions are subject to appeal to the Delaware Supreme Court, however Venator will seek interest from May 2019.
  • E
    Erik
    Hi all,
    I just started investing in VNTR as I see TiO2 business as one of the emerging high margin basic materials businesses, that clearly seems to be in a elongated up-phase.

    I looked at the 3 "almost pure-play" TiO2 companies, VHI, VNTR and TROX. (CC is less interesting as less than half of their business is TiO2) and concluded that VNTR has the best fundamentals of the 3. Why are VNTR lower valued than TROX and VHI in spite of lower debt load?

    Reason is that they to some extent have flooded the market with stock (about 50M stocks total in their first and recent secondary offerings) so right now the market had some "indgestion". But the fact that 16M VNTR stocks were bought yesterday shows that there is actually huge market appetite for VNTR.

    Compare to VHI (their one analyst 2018 earnings forecast gives a forward PE of 9, but their debt load is much higher than VNTR) or TROX (more uncertainty, and a forward PE around 18) and VNTR is an obvious choice at forward PE right now down at 8,5 (and lower debt load than their peers) and very slight uncertainty related to the Pori factory that will deliver 75% Ebitda by q2 2018 (means total EBITDA will be at 96% of capacity after Q2 onwards (more if they invest a little, and until then their insurance gives full coverage).

    This is a no brainer, in case there is more short term volatility, it will be worth the while riding through it. VNTR is a $30 stock or more.
  • j
    john
    Also - just read a Morgan Stanley article... they are projecting EBITDA for the next few years in the $225M-$250M. If you do 6x EBITDA you get a valuation in the $1.35B to $1.5B range. The current valuation is ~ $.45B....so at this price - you could likely get a 2x to 3x return.
    Yes - buy more, especially on the dips.
  • R
    Robert
    Stock has been hammered since Pori! One thing I feel fairly certain about, barring any macro event, is that when their earnings return this stock should triple from here and it will happen quick!
  • a
    alexalekhine
    $251 million of cash at 18Q3 vs. $748mm of debt.
    Equity market cap of $420; Enterprise value of about $925mm.

    Estimated EBITDA for 2019 has been marked down by 50% over the past year but still comes in at $281.5 million.

    So, Enterprise value to estimated EBITDA is about 3.2x. Very cheap considering that there is virtually no new capacity under construction globally.

    I started a fractional position (about 1/7 of a full position size) sub-$4 this morning (12/11/18)

    HUN has said it intends to fully divest its position here.

    Does anyone know if they have additional insurance proceeds from Pori yet to arrive?

    Also, it looks as if they will not be buying the facility that Chemours must divest in the midwest in order to close their acquisition of Cristal.

    aa
  • J
    Josef
    “We are increasing production to meet the requirements of our customers for all our products throughout 2022. We continue to increase our selling prices to align with the inflationary cost environment. TiO
    fundamentals remain intact and we are committed to expanding
    our margins and improving our cash flow profile.”

    very strong declaration from CEO. Turn around is knocking on the door with huge hammer. I am enjoying today´s weakness and have increased my holdings from 3000 to 11000 shares today
  • j
    john
    Any thoughts on valuation for VNTR vs what was offered for TROX ($4.3B)

    TROX seems to be valued at 1.2 x Annualized Q2 Revenue ($891M) and 19x last Qtr's EBITDA.

    I know TROX has other products - and is operationally more profitable....still - seems like there's good upside for VNTR. FWIW - Morgan Stanley has a Neutral rating on VNTR and price target of $4.50.
  • G
    Greg
    Interesting. Huntsman just sold 2 billion worth of assets, and here's VNTR, worth about 10% of what they sold it for 2 years back, they could buy it back for next to nothing, they already own over half on VNTR outstanding. Somebody has to take a shot at this, trading well below book value.
  • Y
    Yuri
    Still cannot understand why VNTR is trading at sub $300M. Most of its peers trade at 1x-ish revenue. Even if VNTR hasn't been executing operationally as well as its peers, trading at 0.14x revenue doesn't make sense.
  • D
    Dave
    Market leader in TIO2! Venator Materials (VNTR) Presents At Jefferies Industrials Conference - Slideshow https://seekingalpha.com/article/4285140?source=ansh $VNTR
  • H
    HRK
    $VNTR is going to further receive $75 Million with some added interest for 3 years from the Tronox trial that is getting ready for a conlcusion either this month or November.

    Today's News non-related to $VNTR but concerns with former Huntsman.
    The Woodlands, Texas-based company stands to receive more than $400 million before taxes if the New York State Supreme Court upholds the arbitration panel’s decision.
    Bullish
  • H
    HRK
    Looking into where Apollo is quoting for $TROX at $27, my calculation is coming to where we need to price $VNTR cloase to $20. What would be nice is TROX not consider the offer and then Apollo reaching into see for valuing $VNTR for a buy out would be good.
    Bullish
  • R
    Robert
    To those who invest with the 20 share price in mind over the next quarter or two..........I’ve got news for you!
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