Sifting through the rubble
There certainly has been a lot of carnage during the recent stock market tumble, but one that has really caught my eye is Huntsman Corporation (HUN). It reported a solid quarter, missing estimates by only a penny and its stock is down over 40% over the past couple of weeks. Ouch.
Two major reasons why the company missed estimates are the recent strength of the Swiss currency (which doesn't appear to be about to change) and high commodity costs. This recent implosion in the markets has certainly taken care of the latter. Oil has fallen off of a cliff, so that will help on the cost side. Of course, recessions (if you believe that we're headed back into one) are obviously not great for specialty chemical companies, but I am inclined to believe that the recent sell-off in Huntsman has bee somewhat overdone. It's currently quite a bit cheaper than the average company in its sector looking at a number of metrics, like price/sales, price/book, price/earnings.
The company recently announced a special $100 million stock buyback and it pays a dividend of over 3%.
I'm just starting to sniff around HUN. Is anyone out there familiar with the company. If so, I'd love to hear your thoughts on it. Also, I'd love to hear what other stocks have jumped off the page at you as being exceptionally cheap right now.