Market Talks with Dr. Stoxx
Market Cap: $2.0B
NOTE: WE ARE LONG TROX IN THE DR. STOXX OPTIONS LETTER (click here)
Tronox produces and sells titanium based chemicals and pigments that have a variety of industrial applications. Shares trade at 22x forward eps, under 1x sales, under 2x price to book value; on 81% eps growth this year and 107% projected growth. This momentum play is up 147% over the past 12 months, including a 56% ramp year to date. Shares pay 1.2% and that is expected to increase this year on growing revenues. The company's recent purchase of Cristal, a titanium dioxide business, created a great deal of demand for shares of the stock.
The chart below shows a massive rally in February on the Cristal news followed by sideways cosolidation. Recent price action suggests this constructive period is nearing an end and that the dominant uptrend will continue soon.