Chemours Company: Bulls Need a Reality Check
Two catalysts have led to 129% gains for specialty chemical manufacturer Chemours Co. (NYSE: CC) in the past year. The long-awaited recovery in selling prices of titanium dioxide, for which the company is the leading global manufacturer, has provided one continuous boost throughout 2017.
But the catalyst that started the stock rally occurred in February 2017, when the company settled a drawn-out legal fight concerning the dumping of a toxic chemical into public waterways. The $670 million settlement removed a cloud of uncertainty that had been hanging over the stock -- and on terms that were more favorable than the worst-case scenario Wall Street envisioned. Better yet, since Chemours had stopped using the toxic chemical in its American manufacturing processes, many assumed related liabilities were a thing of the past.
An unfolding environmental and public health issue in Fayetteville, North Carolina, could prove otherwise. It may be the reality check Chemours bulls need to consider that profits aren't the only bottom line to consider for an investment.
Source: Fool.com
