New Trade: Long HUN
[[HUN]] Huntsman Corporation, long @ $3.01
HUN engages in the manufacture and marketing of differentiated chemical and inorganic chemical products under four segments: Polyurethanes, Materials and Effects, Performance Products, and Pigments.
Special case. Projected target price $8.00 in near term.
The chart:
Click to enlarge
Just wondering what was the thinking behind the trade? HUN had the biggest distribution day since its IPO. It has a ton of overhead resistance & no discernible pattern to trade off of. I’m also curious why you think it’s good for a 250% return?
I’m not being sarcastic, I just don’t see the trade. Walk me through it if you don’t mind.
TSS
TSS,
I’m following Beat the Dart on this trade; bought just 500 shares, a tiny gamble.
I initially shorted HUN at $10+, by the way. Plan to take profit at $5-6, won’t wait for $8. Or I will cut the losses at $2.50 🙂
Here’s the SPM (Subjective Probability Model) info on HUN, for this paticular trade, let me know what you think?
Huntsman Corporation (HUN) – last $2.93 . HUN engages in the manufacture and marketing of differentiated chemical and inorganic chemical products under four segments: Polyurethanes, Materials and Effects, Performance Products, and Pigments.
For the period ended Sept. 30, the company posted a loss of $20.2 million, or 9 cents per share, compared with a loss of $150 million, or 68 cents per share, in the year-ago period.
Excluding one-time items, the company posted a net loss from continuing operations of $1.9 million, or a penny per share.
Revenue rose 13 percent to $2.73 billion from $2.42 billion. Sales at the company’s four business units rose during the period, with revenue in the performance product unit jumping 26 percent to $740.7 million.
“I am pleased with our third quarter results,” Chief Executive Peter R. Huntsman said in a statement. “Our swift and sustained efforts begun earlier this year to increase selling prices have proven effective and are reflected in this quarter’s results, as each of our divisions realized currency adjusted increases in their average selling prices.”
HUN said it incurred $21 million in costs and $28 million in lost profit margins due to third-quarter hurricanes.
HUN received a $325 million deal-breakup fee. In addition, certain Apollo affiliates will pay Huntsman $425 million. And certain Apollo affiliates will buy $250 million of 10-year convertible notes that Huntsman will issue.
The company is a clear value play for near and mid-term. Projected target price $8.00 in near term. SPM+79 LONG.
Excellent. Good luck w the trade!