Okay folks, I'm gonna keep it real here. We had one helluva ride the past couple of weeks in the markets. Let's try to make sense of it how it relates to Chemtura Corporation. We saw Chemtura have a pullback from it's Post Bankruptcy high of 1.48 back on October 15th. The bears took control after that doji formed on the daily chart on the 15th, and it hit the top of it's trading channel. A quick look at the weekly chart will show an investor that the 1.50 region presented strong resistance, not only for it being the top of the trading channel, but prior to bankrupcty, the 1.50 region was a sideways trading channel for some time prior to Chemtura falling off the cliff when it was obvious they were headed into bankruptcy earlier this year. Now, the bears took over after hitting 1.48, and Chemtura has yet to recover from that pullback. The bears took it below it's trading channel to the .98 region, then a couple of bullish days took it to 1.17, but it came right back down on some low volume. It touched down in the .89 arena which served as support - the 34 ema was sitting right there, and I have conjectured that the 21 million share purchase by SVP at average cost of around .90 per share, would serve as good support. Well, we shall see if this is true, but the good news is that Chemtura's 3-Q results came in today, and they were mighty tasty for a company in bankruptcy. This spurned some buyers coming back into the picture and the price topped out today, Oct. 29th at 1.03 and closed @ .96 pps. I was not at my computer today, so I could not watch the tape, but I'm sure that the market makers are trying to keep a lid on Chemtura for more big money to accumulate, but how long can this go on? It might be hard because we have some nice numbers in the 3rd Quarter Filing. Here are some Highlights:
Consolidated Statements of Operations (Unaudited):
(In millions, except per share data.)
Net Earnings (Loss): 8
Net Earnings per share: .03
------------------------------------------------------------------------------
Balance Sheet Highlights (in millions):
Total Current Assets = 1454
Total NonCurrent Assets = 1670
Total Assets = 3,124
(Total Assets = Total Current Assets + Total Non-Current Assets)
Total Current Liabilities = 647
Total Non-Current Liabilities = 339
Total Liabilities Subject to Compromise = 1,793
(Total Liabilities Subject to Compromise = Total Current Liabilities + Total Non-Current Liabilities)
Total Liabilities not subject to compromise: 986
Total Liabilities: 986 + 1793 = 2779
(Total Liabilities = Total Liabilities not subject to compromise + Total Liabilities subject to compromise)
Total Chemtura Stockholder Equity = 3124 - 2779 = 345
(Stockholder Equity = Total Assets - Total Liabilities)
Segment Net Sales and Operating Profit (Loss) (Unaudited):
(In millions)
Total Sales: 681
Consumer Performance Products = 115
Industrial Performance Products = 271
Crop Protection Engineered Products = 89
Industrial Engineered Products = 206
Operating Profit (Loss): 61
Consumer Performance Products = 17
Industrial Performance Products = 29
Crop Protection Engineered Products = 5
Industrial Engineered Products = 10
General corporate expense, including amortization: (27)
***Impairment Of Long-Lived Assets: 0 (This is big here folks. Huge impairment charges taken in previous quarters, and none here...lookin' good)****
Total Operating Profit (Loss): 34
(Total Operating Profit = Total Operating Profit - General Corporate Expense)
Book Value = Assets - Liabilities / Equity
Book Value = 3124 - 2779 / 242.9 = 345 / 242.9
Book Value = 1.42
Chemtura closed trading today as mentioned earlier at .96. Still a bargain in my book, but the market makers are gonna try to scare retail into selling this gem of a stock. It is what they do because the pink sheets and the OTC - Over the Counter Bulletin - have no regulators to enforce much of anything, so it's kinda like the Wild West of Investing. For those who can stomach the swings on this stock and this exchange, it might prove fruitful all the way back to Big Board Status. Fundamentals are getting better everyday for this company, and for some this may be the opportunity of a lifetime. Fundamentals are looking good even though the technicals have taken a real beating lately.
Link to 3rd Quarter Report at Chemtura's Website:
http://phoenix.corporate-ir.net/phoenix.zhtml?c=68079&p=irol-newsArticle&ID=1348488&highlight=
