Replies to post #6876 on Tronox Inc. (TROX)

[uhlmant]

All in my opinion...I don't run a multi-billion dollar business.

KRO is valued at 2.15B market cap. As of Dec 13 about 15% shares were short (we probably saw some covering of that today).

TROX is valued @ 2.63B as of today plus some unknown tax benefit.

Tronox is vertically integrated and produces HIGH quality tio2. Whereas I believe KRO sits in the space being abandoned by Dupont and aggressively being built up by the Chinese.

Also, KRO has a bizarre ownership structure which I believe is partly responsible for keeping the float low (~20M) and price high.

I think KRO would have made sense a month or two ago when it was trading 20% lower. How much more would TROX have to pay?

It also yields a health dividend of 3.5% because the owner Mr. Simmons, through NL and Valhi own most of KRO. The dividend also probably kept the price up. If the dividend goes away, who knows what happens to the price.

Anyway..my 2 cents. Doesn't mean the deal couldn't happen. If so, prepare for TROX to decline.