Cabot Industries (CBT)
Solid chemical company with local manufacturing plants allover the world, it is trading around 0.5 P/S,
It's debt is around 1 billion dollars,
yearly sales are about 3.2 billion,
outstanding shares 56.68 Million
short interest around 1.3 %
CBT options are thinly traded, but could be worth the risk to open long position for earnings and dividends towards end of May ? or buy the stock out right and sell covered calls ?
The other way to make money is to sell out of the money puts for premium.
Question: How badly sales will be affected by Covid 19 in next Q's ?
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Cabot Corporation Completes Acquisition of Shenzhen Sanshun Nano New Materials Co., Ltd (SUSN)
BOSTON--(BUSINESS WIRE)--Apr. 1, 2020-- Cabot Corporation announced that it has completed its previously announced acquisition of Shenzhen Sanshun Nano New Materials Co., Ltd (SUSN) for approximately $115 million. The business will be integrated into Cabot’s Performance Chemicals Segment.
SUSN is a leading carbon nanotube (CNT) producer in China. The acquisition significantly strengthens Cabot’s market position and formulation capabilities in the high-growth batteries market, particularly in China, which is the largest and fastest growing electric vehicle market in the world. With this acquisition, Cabot becomes the only carbon additive supplier with commercially proven carbon black, CNT, carbon nanostructure and dispersion capabilities.,,,,,,,,For complete article please Cabot Industries website ....Click link below
https://cabotog.gcs-web.com/news-releases/news-release-details/cabot-corporation-completes-acquisition-shenzhen-sanshun-nano
as I write this post CBT is trading at $35.10 for nice gain of almost 16%...this stock is still undervalued but I wouldn't want to own it for earnings date....As my grandma used to say, if someones gives you money grab it and run before they change their mind....with 16% profit in 3 days I would run or at least sold some covered calls for extra profit or some insurance on the down side
ReplyDeleteCBT drifted down to below $28 a share last week, I wish I could buy some call options for it, but I didn't want to distract myself from my other positions in AMD and TAP
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