Afanti Arbitrage
Arbitrage, deep value, contrarian, long-term horizon

Tronox: Complex History Hides Large Upside

Based on my analysis, Tronox (NYSE:TROX) is significantly undervalued at its current market price.

Tronox is a vertically integrated producer and marketer of titanium dioxide (TiO2) pigments and titanium-bearing mineral sands. The large upside of this under-followed stock is temporarily hidden by the complicated history of the company, which reemerged from bankruptcy in 2011, and completed a major business combination prior to returning to the NYSE in 2012. Potential catalysts for realization of true value include expiration of legacy titanium feedstock contracts, the return of wider analyst coverage, and the reduction in motivated sellers who became shareholders as a result of reorganization. The most recent year has been exceptionally rough in the TiO2 industry, and an industry recovery...

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