"(Kronos) is
a global producer and marketer of titanium dioxide pigments (TiO2), a base
industrial product used in a range of applications. s of December 31, 2011,
approximately 50% of the Company was owned by Valhi, Inc. and approximately 30%
was owned by NL Industries, Inc. Valhi also owns approximately 83% of NL
Industries. Its customers include domestic and international paint, plastics,
decorative laminate and paper manufacturers. It ships TiO2 to its customers in
either a powder or slurry form through rail, truck or ocean carrier."
Dividend Yield
currently at 3.50% now trading at historically cheap valuations based on price
to sales and book value. Current P/B = 1.9 versus the 5 year average of 2.30. P/S
at .90 approximates the .90 5 year average. Gross margins are at their
historical high of 41.40% versus 16.80, 11.40,23.80 and 38.50 for the
periods ending 2008 to 2011
respectively. The balance sheet has also improved with total debt being
aggressively reduced from 1,040,800 to
899,600,000 for the latest quarter. Steadily improving EV/EBITDA now sitting at
only 3.12 or a yield of 32.02%. YOY revenue increase of 33%.
Insider buying has
been stellar over the past 2 years providing more evidence of an oversold
situation.
