Calumet Specialty Products: Falling Knifes And Investor Irrationality

Jan. 29, 2024 6:18 PM ETCalumet, Inc. (CLMT) StockCLMT298 Comments
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Summary

  • Calumet Specialty Products is experiencing a falling knife pattern in the market.
  • The company is comprised of three businesses, all of which are now performing well generating significant levels of excess cash.
  • Calumet has several strategies in place to manage its debt, including a possible DOE loan and a partial equity sale of one of its businesses.

Knife with Blood against White Background

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Even companies like Calumet Specialty Products (CLMT) with its brilliant future can experience the dreaded chart pattern labeled falling knife. Investopedia defines one, "[f]alling knife refers to a sharp drop, but there is no specific magnitude or duration…." Investors generally

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