10 Worst Falling Stocks To Buy Now

6. Compass Minerals International, Inc. (NYSE:CMP)

Number of Hedge Fund Holders In Q2 2024: 24

Short Interest % of Shares Outstanding: 16.17

YTD Share Price Loss: 55.84%

Compass Minerals International, Inc. (NYSE:CMP) is a diversified industrial raw materials company that caters to the needs of the construction, chemical, and agriculture industries. Its poor performance on the market, as evidenced by a 55.84% year to date share price drop is both due to factors out of and in the firm’s control. Compass Minerals International, Inc. (NYSE:CMP) is yet to file its Form 10Q for the second quarter with the SEC, and consequently, it has received default notices from lenders. On the business front, the firm has seen its salt revenue drop due to milder weather, and it has also seen new executive appointments by bringing CFO, COO, and a new Corporate Controller on board. Additionally, Compass Minerals International, Inc. (NYSE:CMP)  had decided to pivot to lithium production in 2023, but regulatory concerns forced it to stop. This decision led to a $77 million expense, and woes worsened in 2024 when the Forest Service found fire retardants sold by a Compass Minerals International, Inc. (NYSE:CMP) business caused tanker corrosion. This led to future sales of the chemicals being suspended. The firm is also facing litigation related to the forest business.

Consequently, Cove Street Capital’s commentary for Compass Minerals International, Inc. (NYSE:CMP) was quite hard hitting during the Q2 2024 investor letter:

“We have reset our position in Compass Minerals International, Inc. (NYSE:CMP) to 2.5% from 5%. The valuation being accorded to its two “irreplaceable” U.S. assets in salt and sulfate of potash are worth multiples of the current value of the stock, but weather headwinds have sucked the life out of the equity. Said another way, the company has been idiotically run and managed with a mindset that weather is NOT an issue in agriculture and de-icing salt and that has cost us dearly to date. A 72-year-old Board member has stepped in as CEO with a very obvious mission: reduce costs and sell the company. We again would note the Koch family paying $36 per share for a 17% share in the company, among other unhappy people.”