Huntsman Stock Is Down 45% This Past Year, but One Fund Is Doubling Down With a $10 Million Bet

Core Viewpoint - Huntsman Corporation, a global chemicals company, is facing significant challenges with its stock price down 45% over the past year, while the S&P 500 has increased by about 15% [2]. Despite this, the company continues to generate positive cash flow and is focusing on balance sheet preservation [4]. Company Overview - Huntsman Corporation specializes in specialty chemicals, providing innovative solutions across various end markets, with a diversified product portfolio aimed at meeting industrial and consumer needs [1]. Financial Performance - In the third quarter, Huntsman reported an operating cash flow of $200 million and free cash flow of $157 million, despite a GAAP net loss of $25 million and a decline in adjusted EBITDA year over year [4]. - The company's liquidity stood at approximately $1.4 billion at the end of the quarter, indicating a strong cash position [4]. Shareholder Activity - First Wilshire Securities Management increased its stake in Huntsman by purchasing 431,403 additional shares during the third quarter, bringing its total holdings to about 1.13 million shares valued at $10.13 million [3]. Market Context - Huntsman's stock has been adversely affected by the broader chemicals cycle, but it is viewed as a potential opportunity for investors looking for balance-sheet durability in a cyclical industry [5]. The company is not expected to rebound quickly, but it offers operating leverage if pricing stabilizes and volumes recover [5]. Dividend Strategy - The company implemented a controversial 65% dividend reset, which may reflect a realistic approach to its current financial situation rather than a sign of distress [4].