Dear Nervous Nellies,
At times I am nervous too, but I always go back to the basics and verify the logic 'The Numbers'
I put all five years balance sheet on the wall and I look at them to find out any holes in it. It calms me down when I see the numbers. Today morning I thought, if the market is smart then the stock should go up 'Parabolic' and funny my wife actually predicted 70 cents. It is very simple; market should look in the future not past.
Today Chemtura proved a point to all of us, i.e., the market is 'Smart' and it sees the value in the company. Remember today CEMJQ market cap is at around 180 million, if there is any doubt in the ‘market’ mind, that ' Cancellation of Shares', Chemtura market cap would be around 30-40million not at 180 million.
And remember we the Ihbbers are not the market definers, we are just followers. May be ‘CEMJQMILLIONARE’ and myself could bring down the price 10% any given day but other than that, everything is in BIG hands.
Beauty of the balance sheet: if you look at the balance sheet closely, they are cleaning it wisely, and compare it to ‘GRA’ balance sheet and see yourself, recently Cramer recommended ‘GRA’ which is in BK and negative book value.
The assets are soooo undervalued and the entire analyst community sees this and this is not Software Company, these assets are 3-4 times more valuable than shown on the books.
‘Asset sale’ or ‘Refinance the debt’ (since few month 20 billion went into bonds of the distressed companies: why do you think Chemtura’s bonds going up?). It does not matter, the market will brings the true value to the shares of Chemtura given time.
IMO, justifiable market cap is at least 1 billion for Chemtura..
All I care is ‘Share holder committee’ formation and which will happen some day, which will protect our rights..
GLTA
Venu
AI
