FOE

Ferro Corp

Industrial/Transportation


Presented:07/08/2013
Price:$6.35
Cap:$0.55B
Current Price:$22.01
Cap:$1.84B

Presented

Date07/08/2013
Price$6.35
Market Cap$0.55B
Ent Value$0.87B
P/E Ratio12.87x
Book Value$3.73
Div YieldN/A
Shares O/S86.57M
Ave Daily Vol660,000
Short Int4.32%

Current

Price$22.01
Market Cap$1.84B
Ferro Corporation, together with its subsidiaries, produces and sells specialty materials and chemicals in the Untied States and internationally. It operates in six segments: Performance Coatings, Electronic Materials, Color and Glass Performance Materials, Polymer Additives, Specialty Plastics, and Pharmaceuticals. The company provides electronic, color, and glass materials, including conductive metal powders, polishing materials, glazes, enamels, pigments, decoration colors, and other performance materials. It also offers polymer and ceramic engineered materials, such as polymer additives, engineered plastic compounds, pigment dispersions, glazes, frits, porcelain enamel, pigments, inks, and high-potency pharmaceutical active ingredients. The company provides its products for a range of applications in various markets, such as appliances, automobiles, building and renovation, electronics, household furnishings, industrial products, packaging, and pharmaceuticals. The company sells its products to manufacturers of ceramic tile, major appliances, construction materials, automobile parts, glass, bottles, vinyl flooring and wall coverings, and pharmaceuticals directly, as well as through agents and distributors. Ferro Corporation was founded in 1919 and is headquartered in Mayfield Heights, Ohio.

Please note, this idea was updated on 4/28/2014 and can be read here: Long — Ferro Corp (FOE) (Update).

Highlights

The presenter believes A. Schulman’s (SHLM) failed bid to acquire Ferro (FOE) created a buying opportunity for shares of FOE. The proposed deal was conditional upon review of FOE’s books, and the presenter said the offer for FOE could have possibly been raised to as much as $8.00 per-share - from $6.50 - if the deal terms were revised. However, FOE rejected all offers and its shares fell to the low $6s the week of July 1st when its suitor formally withdrew the bid. Patient shareholders of FOE will likely be rewarded, as he sees the potential for the stock to trade up to the $10-$12 level over the next 12-24 months. The following factors support his bullish outlook for FOE:

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Idea Discussion

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