Mason Hawkins (Trades, Portfolio) sold out  of Chemtura Corp. (CHMT, Financial). He sold his 4,286,930 shares at an average price of $32.81 per share. The trade had a -1.17% impact on Hawkins portfolio. Since the fourth quarter of 2014, Hawkins gained an estimated 38% with his investment in the company.
It was reported that Hawkins had no remaining shares in Chemtura Corp on Sept. 30, according to a 13-G filing with the Securities and Exchange Commission.
Chemtura Corp. is a global, specialty chemicals company. The company builds chemicals that makes other products more durable, safer, cleaner and more efficient. Chemtura primarily serves the transportation, energy and electronics industries. The company is also a global manufacturer and marketer of high-performance additive components, building blocks for synthetic lubricant base-stocks. The company is also a world leader in high-performing calcium sulfonate specialty greases and phosphate and polyester-based fluids. Chemtura Corp is also one of the three largest developers and manufacturers of organometallic compounds that have applications in catalysts, surface treatment and pharmaceuticals (Organometallic Specialities).
Chemtura corp has a market cap of $2.07 billion, a price-earnings (P/E) ratio of 68.33, an enterprise value of $2.36 billion, a price-book (P/B) ratio of 2.17, a current ratio of 2.68 and a quick ratio of 1.71.
According to GuruFocus, Chemtura Corp. has a 5 of 10 financial strength rating with a cash to debt ratio of 0.39, an equity to asset ratio of 0.43 and an interest coverage ratio of 1.43. The Piotroski F-Score of 6 indicates a typical business situation for a stable company. The company also has a 7 of 10 profitability and growth rating with an operating margin of 2.53%, a net-margin of 2.06%, a ROE of 3.59%, a ROA of 1.50%, a ROC (Joel Greenblatt (Trades, Portfolio)) of 5.05% and three-year EPS growth of 6%.
GuruFocus gives Chemtura three medium warning signs that may have influenced Hawkins to sell out his remaining shares in Chemtura.
- The company’s per share revenue growth has slowed down over the previous 12 months. During the previous 12 months, the average revenue per share growth rate of Chemtura was 4.80% per year. During the previous five years, the average revenue per share growth rate was 14.20%. Chemtura has declined an average of 9.4% from its previous five-year average per share revenue growth rate.
- The company’s price reached its five-year high in price.
- The company’s price-sales (P/S) ratio is close to its 10-year high. Chemtura Corp’s stock P/S ratio (=1.29) is close to its 10-year high of 1.3.
Guru Mason Hawkins (Trades, Portfolio) graduated from the University of Florida with a degree in finance and then he went onto attend the University of Georgia in 1971, where he received his Masters of Business Administration in finance. Hawkins has very similar investment philosophies to Warren Buffett (Trades, Portfolio), Benjamin Graham and Philip Fisher. He looks for businesses with good management, good people and sell for deep discounts. Hawkins founded Southeastern Asset Management Inc. in 1975, and is the chairman and CEO for the firm.
Disclosure:Â Author does not own any shares of this company.
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