Tronox Inc. (TROX)

[newtechinvestor]

Pre-arranged sale seems to be the most plausible scenario. But profit taking? Seems hardly makes sense.

That many shares changing hands can't be a main street investor fortunate enough to buy tons of shares below teens. On the other hand, seasoned distressed debt or equity investor should be very familiar with Tronox's book and its intrinsic value, and hold for much higher gains.

Whatever the case, the price is stable and poised to resume upward momentum.

The outlook indeed has never been better for equity holders. The only item remaining for Tronox to exit Chapter 11 is for stakeholders to come to an agreement on exit financing. Bondholders' plan nixing equity holders have spooked some retail investors, but overall there's big buyers at these levels. Bond price has essentially recovered to par value, and the equity price should be next to recover substantially.

EC's alternative plan should provide good catalyst for share price appreciation. IMO, EC's plan should include potential recovery for Tronox from the lawsuit against APC. Which entity has been harmed most by the fraudulent transfer of legacy environmental liabilities by KM, now APC? It is Tronox and its shareholders. Why should EPA get 88%? I think given the potential settlement size, EPA should get a lot less and Tronox should get meaningful recovery. By the way, tort claimants should get a little more to cover all health related damages to people harmed by the pollution created by these toxic pollutions.

Likewise, I agree once Tronox exits Ch. 11, it would once again become a very attractive takeover target. In fact, it should be a much more valuable take out target than previously as the company would be lean with best operating assets devoid of all environmental liabilities.

Book value $6/sh or stockholders equity of $248mil. Current market cap $26mil. Wonder how long this will last?

Have a good weekend to you and the rest.