Venator Materials (VNTR) is very interesting company, besides wide range of products they offer, their valuation is incredibly low.
Shrinking revenues and earning are not as bad as charts could make us believe or explain why this +$20 per share stock is trading now around $1.25.
If there are some underlying problems with this company, we don't know that, but I would rather attribute oversold condition of VNTR to shrinking economy, lower demand for products and sluggish commodity prices.
Is VNTR worth buying at this stage? yes and no, NO, because we don't know how long this economical slump will last and when commodity prices will start to move up to catch up with hidden inflation. YES, because right now VNTR is trading much below 0.1 price to sales and could be subject to hostile takeover, buyback from (HUN) Huntsman Corporation at price much higher than Friday $1.25 closing....ahmm, like between $7- $15 a share ?. Of course, what I am writing here is pure speculation, but still, in my opinion VNTR stock belongs to $5-$7 range or even higher.
I don't intend to buy into Venator, because it is too risky, yet, I am thinking about following this stock with "Long shot" call option strategy, it costs only $5 per contract on June 19th $2.5 strike. If VNTR "decides" to move to the upside, I believe, the jump can be rather explosive, on high volume and that will propel call option prices skyward.
* below: VNTR weekly chart since 2017, it's IPO
What I don't like about VNT Venator Materials, fact that they don't pay dividends .., the other think I don't like, their website is too beautiful? like it was build for sucker investors ?
ReplyDeletetoday VNTR closed at $1.40, that's +10% up on relatively low volume, it didn't affect my $5 call contracts.... to get a "ride", this stock need to move up at least 20-30 % to get noticed, momentum and gain on volume
ReplyDeleteVNTR is moving up on daily basis now, I am long on June 19th @ $2.50 calls, but options for this stock are so thinly traded that unless price gets in the money I wont be able to cash out for profit .
ReplyDeleteAll the ugly ducklings in chemical and basic materials sectors turn out to be raptors ready to stretch their wings with rising commodity prices............look at SSL and many others..........you just can not keep these stocks trading below 0.1 p/s for too long .......those are not dotcom bubble companies of 1990s or pharma craze of today, these companies have huge revenues and only got on the shit list because of commodities prices crash
ReplyDeleteAccording to these "analysts" VNTR can go to ZERO .......
ReplyDeletehttps://walletinvestor.com/stock-forecast/vntr-stock-prediction#predicted-prices