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News  ›  The Motley Fool

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

The Motley Fool Logo The Motley Fool By Jonathan Ponciano
Huntsman Stock Is Down 45% This Past Year, but One Fund Is Doubling Down With a $10 Million Bet

First Wilshire Securities Management increased its stake in Huntsman Corporation by purchasing 431,403 additional shares in Q3, bringing its total holding to 1.13 million shares worth $10.13 million. Despite Huntsman's stock declining 45% over the past year, the fund is betting on the company's strong cash flow generation and balance sheet durability in a cyclical chemicals industry, with management executing restructuring programs targeting $100+ million in savings.

Insights
WFCpZ   neutral

Mentioned as a joint book-running manager for the offering, performing a standard financial service role


HUN   neutral

Stock is down 45% year-over-year with GAAP net losses, indicating significant near-term weakness. However, the company generates strong operating cash flow ($200M in Q3) and free cash flow ($157M in Q3) despite losses, maintains solid liquidity ($1.4B), and is executing cost-reduction programs. The fund's increased investment suggests confidence in long-term value based on cash generation and balance sheet strength rather than near-term earnings recovery.