Nathan Rapport
Long only, special situations, growth at reasonable price, contrarian

Kronos: Record Sales Volumes Suggest A Big Rebound Soon

In a previous article I discussed the curious mispricings of an obscure holding company called NL Industries (NYSE:NL), which owns 30% of a titanium dioxide producer called Kronos (NYSE:KRO).

Titanium dioxide is a pigment that provides whiteness and opacity to paper, plastics, paint, and inks. The market for titanium dioxide is largely tied to the global economy. The global titanium dioxide industry is worth about $9.3B, whereas Kronos's annual revenue last year was around $2B.

When I wrote my article about NL, Kronos was down 20% for the year on two negative quarterly earnings in a row, as well as a negative fourth quarter in 2012. At the time of writing, they are down 26%. However,...

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