Tronox Inc. (TROX)

[Stresstest]

Valuation of warrants can be done relatively easily with a lot of already known info. I would not count on some wide guess of 1.5B or 2B market cap. Company's own financial projection already gives a pretty detailed picture.

http://www.kccllc.net/documents/0910156/0910156101005000000000008.pdf

Refer to the above '11 - '13 financial projection, including net income, book value, and cash flow, all point to a much lower yet more grounded market cap of $300MM-$1B. For example, net income will be in $30MM-$50MM range, let's say PE 10~20. Low end will be $30*10=300MM, high end $50*20=1B. That range is supported by book value as well (book value will be $6~10 per share). That means starting PPS is more likely to be in the range of $20~60 rather than a somewhat wishful $100+. My bet is it will be out of money initially and then drift higher or lower depending on economy and industry. From there you can easily estimate value of warrants.

I understand from my own early experience how hard it is to invest in BK companies and don't want to see uninformed investor be ripped off. Just providing some available public info to the true investors here. Good luck to all.