In a market broadly agreed upon as expensive, where:
- companies that aren't growing much are awarded high multiples
- … and companies that grow a lot but make no money are awarded 10x higher multiples
What do you call a company that's:
- actually making money
- growing earnings 12%+ a year despite secular headwinds that may soon abate
- trading at a touch over 11x forward-year earnings, 13.6x if you count net debt?
I call it "cheap", and so does Credit Suisse, labeling it one of their "top ideas" in Basic Materials. I think 40% upside is possible over the next two years.
Celanese (CE) is a specialty materials company with a diverse suite of product offerings,...
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