Tronox appoints new chief executive officer
On November 16, 2017, Tronox (TROX) appointed Jeffry N. Quinn as its new president and CEO (chief executive officer), effective December 1, 2017. Quinn will replace Peter Johnston who has been interim CEO since May 15, 2017, after Thomas J. Casey retired as CEO due to health reasons.
Quinn has more than 30 years experience in the fields of mining, refining, and chemicals. He served as chair and CEO of Solutia from 2004 to 2012. In 2012, Eastman Chemical (EMN) took over Solutia. Quinn said, “It is an honor to assume the role of president and chief executive officer of Tronox. I look forward to working with our board, a talented senior management team, and Tronox employees worldwide to fulfill our mission of creating value for our shareholders, providing high-quality materials and superior service to our customers, and operating safe, environmentally responsible facilities.”
Quinn will have a more significant role to play since TROX is looking at being a major player in the titanium-dioxide space after acquiring Cristal’s Tio2 (titanium dioxide) business. The transaction is expected to be completed in the first quarter of 2018.
Update on Tronox stock
Tronox fell 1.2% and closed at $26.29 for the week ended November 17, 2017. Although the stock fell, the upward trend appears to be intact since it traded 20.2% above the 100-day moving average of $21.90. On a year-to-date basis, the stock has risen a whopping 155%, while its peers Chemours (CC) and FMC (FMC) have risen 137.7% and 64.3%, respectively. Analysts expect the upward trend in the stock to continue and have recommended a target price of $29.25 over the next 12 months, implying a return potential of 11.3% over the closing price on November 17, 2017.
Investors can get indirect exposure to Tronox by investing in the VanEck Vectors Rare Earth/Strategic Metals ETF (REMX), which has invested 8.3% of its portfolio in Tronox as of November 17, 2017.