© Reuters. David Einhorn, president of Greenlight Capital speaks at the Sohn Financial investment Conference in New York
BOSTON (Reuters) – Hedge fund supervisor David Einhorn informed investors that he thinks performance chemicals business Chemours Co will see its revenues grow as prices for titanium dioxide (TiO2), used in the food and cosmetic markets, recover. Einhorn’s remarks, in a letter sent to Greenlight Capital investors on Tuesday morning and seen by Reuters, helped the business’s stock price climb 6.14 percent to $9.33. “We expect the stock to appreciate as investors refocus on the incomes power of business, which we believe will approach $2.00 in 2017,” the letter stated. The hedge fund sees space for cost cuts at Chemours, which was spun off from DuPont (NYSE:-RRB- a year earlier, Greenlight wrote. In June the company’s stock price was pushed lower when prominent short-seller Andrew Left published a report that said the company was “established for bankruptcy” due to legal issues connected with a ceased product. Greenlight stated it engaged outside experts who estimate that Chemours’ financial obligation and legal liabilities are workable. The dip in the stock rate assisted the hedge fund purchase more of the stock after it first started investing in late 2015 when it believed titanium dioxide rates were at or near the bottom. Greenlight purchased its stake at an average $6.58.
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