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Huntsman Corporation Strong Value Play...

|Includes: Huntsman Corporation (HUN)

Full Disclosure: HUN long

I recently increased my position in the Huntsman Corporation to over 24% of my existing portfolio. The Huntsman investment aside, I am well-diversifed in mutual funds across a broad range of market sectors and world regions. Benjamin Graham disciple, I understand the importance of a well-diversified portfolio but also know value when I see it.

I have been bullish on HUN for over a year now. Goldman recently set a target price of $18 and rated Huntsman as a conviction buy. Given the steep ascent of the company in the last year, a further 30% increase looks quite enticing. However, my underlying assessment of the industry and the firm's underlying fundamentals have the stock significantly undervalued if you accept the assumption that Asian and Latin American markets will continue to grow in the upcoming decade. Even with merely modest growth and a bit of a setback resulting from European volatility, my analysis foretells a marked increase in the global demand for industrial materials in the next 24 months. 

With outstanding management and a solid dividend, I have no qualms about the position and wouldn't be surprised to see Huntsman hit the Goldman price target 12 months out. 

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Disclosure: HUN long.

The commentary here is merely the opinion of the author, an untrained individual investor with no professional experience in the financial services industry. Consult a certified financial professional before investing.

Disclosure: HUN Long