Chris Damas
Contrarian, newsletter provider, commodities, industrials

Why Engine Capital Is Wrong On LSB Industries

The stock of LSB Industries (NYSE:LXU) soared to near its $42.79 52-week high yesterday, reaching $41.66 before falling back to $39.80 at the close. Volume at 212,000 shares was average, but high for a holiday week.

The reason for the price spike was the disclosure yesterday of a letter to the LSB Board by an activist shareholder, Engine Capital L.P. based in NYC.

(click to enlarge)

At the closing price, LSB Industries had a market cap of $940 million with 23.6 million diluted shares. Including $455 million in debt, the enterprise value is $1.4 billion, however, much of the cash received in a recent $425 million debt issue lies on the balance sheet and the company received $53

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