Tronox Inc. (TROX)

[ofirm]

I think you confuse market cap with enterprise value. These
warrents are based on enterprise value of $1.4B and $1.5B.
If the debt will be $500M and the company will be able to
produce $150M - $200M in cash flow and lets assume after tax
$60M-$70M of net income and we need $900M market cap for the
first set of warrents to get in the money, then we could be ok.
I just hope not too much dilution comes from management and their
options (god only knows what they did so well for this company,
but that is a different question).
If I assume 7% dilution (equity level only) then we should have
$942M market cap to have something in the money.
At $70M net income (p/e of 13.5) and $175M cashflow we should be
ok for $1.5B within a year or so.
I am being conservative in my assumptions. the cashflow could be
quite higher , but I am adjusting to cyclicality.
Good luck to us.