6/01/2012

(May 19th Repost) Good Company at a Cheap Price (Oversold)

http://shadowstock.blogspot.com/2012/05/good-company-at-cheap-price.html

Additional CEO insider purchases reported:

06/04/2012  KRO: KRONOS WORLD Insider Purch 1,000 Shares for $15,550 at $15.55 Buyers Title = Vice Chair. of the Board & CEO Time Reported: 14:31:30 Shares Owned after Purch 126,152

06/04/2012  KRO: KRONOS WORLD Insider Purch 1,000 Shares for $15,570 at $15.57 Buyers Title = Vice Chair. of the Board & CEOTime Reported: 14:31:30 Shares Owned after Purch 127,152
06/04/2012  KRO: KRONOS WORLD Insider Purch 1,000 Shares for $15,590 at $15.59 Buyers Title = Vice Chair. of the Board & CEOTime Reported: 14:31:30 Shares Owned after Purch 128,152
KRO: Kronos Worldwide, Inc.
"(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.




3 comments:

Anonymous said...

I can't tie to your debt number. The latest 10-Q shows debt of 481.5. Also, liabilities went up not down.

ShadowStock said...

1,040,800 was for total liabilities for the period ending December 2007 10k and the 899,600,000 for the latest 10k for the year ending December 2011. The most recent unaudited 10Q was released around May 10. The orginal post did not use this 10q as my data source was probably Yahoo Finance.Thanks for pointing this out.

John

Anonymous said...

Ah, now I understand. Total liabilities per the 10-K are 899.6 as you stated. I also did not realize you were comparing against 2007. Interesting company. It seems like increased concentration in the industry has made the competitors more cooperative and pricing has gone up.