Huntsman and Venator
Huntsman (HUN) has spun off its pigments and additives business into a company called Venator, which is expected to be listed on the New York Stock Exchange in 2Q17. On February 16, 2017, Huntsman received approval from the IRS (Internal Revenue Service) to keep a 40.0% interest in Venator Materials. Huntsman will also hold a 19.9% voting interest.
Peter. R. Huntsman, Huntsman’s president and CEO (chief executive officer), said, “The receipt of this ruling is an important milestone in the Venator spin-off process. The retention of the 40% economic interest will enable us to capture the benefits of the expected improvement in the titanium dioxide business.”
Huntsman went on to say, “Our desire to retain this amount of economic interest in Venator reflects our vote of confidence in what we believe will be a successful spin-off. The future monetization of our ownership in Venator will create further value for Huntsman as we use the proceeds to reduce our debt.”
Huntsman stock for the week
For the week ended February 17, 2017, HUN closed at $21.34, rising 2.1% for the week. HUN stock was trading 13.5% above the 100-day moving average of $18.80, indicating an upward trend in the stock. On a year-to-date basis, HUN has risen 11.8%.
HUN has a 14-day RSI (relative strength index) of 58, which means it is neither overbought nor oversold. An RSI of 70 or above indicates that a stock is overbought, and a score of 30 or below suggests that a stock is oversold. HUN’s 52-week low is $14.16, and its 52-week high is $22.37.
HUN has outperformed the First Trust Materials AlphaDEX ETF (FXZ), which rose marginally by 0.10% for the week ended February 17, 2017. The top holdings of the fund include Mosaic (MOS), Dow Chemical (DOW), and Owens Corning (OC), with weights of 3.5%, 3.3%, and 3.5%, respectively, as of February 17, 2017.