Ticker CEMJQ i'm asking if anyone knows about this company..i've done alot of research. This company has averaged a trading value between $16 & $8, in november when this depression or recession; whatever we want to call it came along, this chemical company was hit hard, and I don't believe the CEO managed this company well during this time. This company averages sales $3.1 billion in sales a year. In febuary they filed for bankruptcy, and that was completed in March. After the restructure, Citigroup came in on April 29th an gave a $400 million dollar dip loan, to help them get back on their feet. They have hired most employees back and their back to almost full production. This company is now trading at 12 cents. My main question is why did Citigroup come in two weeks after they made this dip loan and buy 6 million shares of this company; also two major head funds came in; one bought 27 million shares and the other bought 8 million shares. On May 15, 2009 the teo head fun groups and Citigroup came back in and bought 6 million more shares. Can somebody figure out what the rest of us little guys don't know.
On Googling the ticker I went through 8 pages before finding apage that was not related to "penny stock" discussions or itemsappearing like a "sales push".Hoever, that being said, on the 8th page there was an Edgar reportthat indicated the company used to be Crompton Chemical.From the standpoint of chemicals in general - they are rarely leaderscoming out of recessions. And the business is not likely to growearnings quickly - in short - this is a speculative play. Theremay be a reason the company is being churned - but little reasonfor an individual investor to gamble.Howie52ANy time you have to ask a discussion board on TMF what "the littleguys" don't know - you don't know enough to invest.Neither do I.
If you look at their website, the history summary is here--http://www.chemtura.com/corporate/v/index.jsp?vgnextoid=4f99...They also include Great Lakes Chemicals, Uniroyal, and Witco in addition to Compton Knowles.If you look at their financial numbers on the Google finance page, you see that they are carrying way too much debt. Ie, they are highly leveraged. So the share purchases probably means some of the people who loaned them money are swapping debt for shares of stock (the same process GM and Chrysler are going through).Great Lakes used to be the leader in bromine chemicals which once went into leaded gasoline. Now its probably mostly flame retardants, but those chemicals have a bad reputation (toxicity, toxic smoke issues). Uniroyal once made rubber chemicals, urethanes. I'm thinking they became a specialty chemical company. Did they buy Polaroid?Witco was a major producer of surfactants and fatty acid chemicals in competition with Emery. All are long gone in mergers, but these tend to be natural based green chemicals.I think of Compton Knowles as a dye producer, but I imagine they do much more than that.I agree with Howie, Chemtura might be OK in good times. For now they are hurting until they get their financing worked out. To me this is not a stock for amateurs. I would stay away. There are better places for your money.
Not to mention they are currently in Chapter 11
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