ASH
Ashland Inc.
Industrial/Transportation, Event Driven/Special Sit
02/25/2015
Presented
| Date | 02/20/2015 |
| Price | $127.26 |
| Market Cap | $8.81B |
| Ent Value | $10.83B |
| P/E Ratio | 62.27x |
| Book Value | $48.00 |
| Div Yield | 1.1% |
| Shares O/S | 69.27M |
| Ave Daily Vol | 750,000 |
| Short Int | 6.94% |
Current
| Price | $86.99 |
| Market Cap | $4.25B |
| Ashland Inc. operates as a specialty chemicals company worldwide. The company’s Specialty Ingredients segment provides products, technologies, and resources for solving formulation and product-performance challenges. It offers solutions using natural, synthetic, and semisynthetic polymers derived from plant and seed extract, cellulose ethers, and vinyl pyrrolidones, as well as acrylic and polyurethane-based adhesives for consumer and industrial applications. This segment serves pharmaceutical companies; makers of personal and home care products, food, and beverages; manufacturers of paint, coatings, and construction materials; packaging and converting markets; and oilfield service companies. Its Performance Materials offers composites, intermediates and solvents, and elastomers, including polyester and vinyl ester resins, as well as gelcoats, maleic anhydride, butanediol, tetrahydrofuran, n-methylpyrolidone, emulsion styrene butadiene rubber, and other intermediates and solvents. This segment serves manufacturers of residential and commercial building products; infrastructure engineers; wind blade and pipe manufacturers; auto, truck, and tire makers; boat builders; adhesives, engineered plastics, and electronic producers; and specialty chemical manufacturers. The company’s Valvoline segment produces and distributes automotive, commercial, and industrial lubricants, automotive chemicals, and car-care products. It also markets lubricants and automotive chemicals under the Valvoline brand name; lubricants for higher-mileage engines under the MaxLife brand name; motor oil under the NextGen brand name; synthetic motor oil under the SynPower brand name; automotive appearance products under the Car Brite brand name; and antifreeze products under the Zerex brand name. In addition, this segment operates and franchises approximately 920 Valvoline Instant Oil Change centers in the United States. The company was founded in 1924 and is headquartered in Covington, Kentucky. |
Publicly traded companies mentioned herein: Ashland Inc (ASH)
Highlights
The presenter is long shares of Ashland, believing the previously announced spin-off of Valvoline is set to finally happen this year. He believes the market is generally undervaluing the Valvoline business, which will be recognized as the deal progresses. In addition, there is ongoing share buyback and the possibility of a higher multiple being assigned to the specialty chemicals business, combining for a $160 price target, up from $127 today.
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