ASH (Update)

Ashland Global Holdings Inc

Industrial/Transportation, Event Driven/Special Sit


Presented:12/21/2016
Price:$109.59
Cap:$6.79B
Current Price:$86.99
Cap:$4.25B

Presented

Date12/21/2016
Price$109.59
Market Cap$6.79B
Ent Value$9.06B
P/E RatioN/A
Book Value$53.85
Div Yield0%
Shares O/S62.00M
Ave Daily Vol725,075
Short Int3.35%

Current

Price$86.99
Market Cap$4.25B
Ashland Global Holdings, Inc. engages in the business of specialty chemicals. Its activities include manufacturing and distribution of specialty additives and functional ingredients including cellulose ethers and synthetic polymers. The company was founded May 6, 2016 and is headquartered in Covington. KY.

Please note, this is an update to Ashland Inc (ASH) - Long, which was presented on June 9, 2016 at $117.

Publicly traded companies mentioned herein: Ashland Inc (ASH), Valvoline Inc (VVV)

Highlights

The presenter remains long shares of Ashland (ASH), and believes the recent decline of Valvoline shares (down ~9% since its IPO) and the underperformance of ASH relative to the industrials sector (since the election in early November) has provided an attractive buying opportunity. At ~$109 ASH is “too cheap” (8x forward EBITDA) and the risk/ reward is favorable ahead of the completion of the Valvoline spin-off (expected in the April-May 2017 period). If a) Valvoline shares can rise by 20% in 12 months, and b) ASH’s multiple can expand by “a point or two”, then shares can reasonably be expected to see $140+ in 12-18 months.

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Idea Discussion

Commentor 1 - 2 weeks ago

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