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Stock of the week: HUN

In 2009, I am starting a new weekly posting on my blog which would list only ONE investment idea - it could be stock, ETF or bond (or cash:-)
Let's start the series with unlikely recommendation.
Company: Huntsman (HUN)
Sector: Chemical
Revenues: Approx $10B
Buy price range: $3.3 to $3.7
12 month target price range: $6-$7
Background:
This company was being taken private at $28 by Apollo and they fought with another company which was offering $25. This was all before economy went into recession. After lot of court challenges etc, both sides agreed to settle with HUN receiving close to $750B as break-up fee.
Chemical companies are typically very sensitive to recession and many of them go BK if they don't have enough cash cushion. After the deal was scrapped, this stock got punished by 50% since folks thought that there is no future and it is going BK. However after receiving close to $1B in cash from Apollo ($250 M for notes), I think this company is survivor and do very well when economy comes out of recession.
Caution: Do you own research before buying into any of these weekly recommendations
Have a good weekend !
/Shyam

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