10 Worst Specialty Chemical Stocks to Buy According to Short Sellers

6. The Chemours Company (NYSE:CC)

Number of Hedge Fund Holders: 33

Short % of Shares Outstanding: 4.33%

The Chemours Company (NYSE:CC) is a global leader in industrial and specialty chemicals, serving key markets like coatings, plastics, refrigeration, air conditioning, transportation, and advanced electronics. The company operates through three main segments: Titanium Technologies, Thermal & Specialized Solutions, and Advanced Performance Materials (APM). With around 6,100 employees across 28 manufacturing sites, Chemours serves approximately 2,700 customers in 110 countries.

In Q2 2024, The Chemours Company (NYSE:CC) reported net sales of $1.5 billion, a 6% YoY decline, driven by lower pricing and portfolio impacts, partially offset by a 1% increase in volume. The APM segment, which deals in specialty chemicals, experienced a 13% quarterly decline due to pricing, volume, and currency impacts, reflecting weakened market conditions and weaker demand in economically sensitive markets.

For the quarter, Adjusted EBITDA dropped significantly from $324 million to $206 million, impacted by lower pricing, production costs, and currency fluctuations. Adjusted net income fell to $57 million from $167 million in the previous year.

Nevertheless, the company’s liquidity remained stable for the quarter, with $1.5 billion in liquidity, including $604 million in cash and $852 million in revolving credit capacity. While net leverage increased to 4.4 times, The Chemours Company (NYSE:CC) remains optimistic about its cash flow outlook. Relying on its robust cash balance, the company launched its Battery Innovation Center in August 2024, to advance electric vehicle battery technology, reinforcing its commitment to clean energy and electric mobility.

Chemours stock saw a 1.94% decline over the past month and a 40.00% drop YTD, driven by weaker demand in key segments, along with pricing pressure, production costs, and regulatory shifts. Consequently, 4.33% of outstanding shares have been sold short, indicating that some investors are betting on a decline in the company’s stock price, earning it a place on our list of the worst specialty chemical stocks to buy.

As of Q2 2024, 33 hedge funds with a combined $379.3 million investment remain bullish on the stock, according to Insider Monkey’s database.