Five Reasons to Own Huntsman

Flush With Cash

At the end of the third quarter, the company had $536 million in cash. The recent legal settlement means Apollo will pay Huntsman an additional $425 million in cash and will buy $250 million of convertible notes that will pay 7% annual interest, along with the $325 million breakup fee.

"A $1 billion settlement in today's market is a tremendous victory," Peter Huntsman said in a telephone interview. "It's time for us to move on and continue to build the company." Any guesses on the company's market cap? Suddenly below $700 million.

Return of Leadership

It appears the founder is back. Jon Huntsman Sr., the widely respected founder of Huntsman, has distanced himself from the company in recent years as his focus has shifted to cancer research. With the company on the brink, he is getting back in the game, which is good news for investors.

He was the one responsible for settling with Apollo after throwing all lawyers out of the negotiations and personally coming up with a deal between his company and Apollo's Leon Black. The two men sat alone for three days from Dec. 9 through Dec. 11 until a deal was reached. This guy is tough and smart, and nobody knows the industry better than he does. His involvement in any capacity is a plus.

---

At the time of publication, Schwarz was looking to begin a position in HUN.

Jason Schwarz is the options strategist for Review Services Inc., an investment advisory firm for professional athletes located in Marina Del Rey, Calif. Specializing in option LEAPS, Schwarz has used this investment vehicle to successfully manage risk during bear markets and to exploit growth opportunities during bull markets.