Top 5 Stock Picks of Naval Khera’s Brightline Capital

3. The Chemours Company (NYSE:CC)

Mr. Khera’s Stake Value: $16.1 million

Percentage of Mr. Khera’s 13F Portfolio: 10.89%

Number of Hedge Fund Holders: 24

The Chemours Company (NYSE:CC) is an American chemicals company founded in 2014 and headquartered in Wilmington, Delaware. It provides substances called performance chemicals, that allow its customers to target several sectors such as the gold industry.

Naval Khera’s Brightline Capital owned 465,000 The Chemours Company (NYSE:CC) shares that were worth $16.1 million and represented 10.89% of his total portfolio value by the end of the second quarter. During the same time period, 24 of the 873 hedge funds polled by Insider Monkey held stakes in the company.

The Chemours Company (NYSE:CC)’s largest shareholder is John Petry’s Sessa Capital who owns 8.8 million shares worth $308 million.

In its second quarter 2021 investor letter, Miller Value Partners had the following to say about The Chemours Company (NYSE:CC):

“The Chemours Co (CC) rose 25.6% during the quarter. The company reported Q1 revenue of $1.436Bn, beating consensus of $1.413Bn and rising +10% Y/Y driven by positive volume contributions across all segments. Earnings Before Income Taxes Depreciation and Amortization (EBITDA) of $268M topped estimates of $265M and rose +4% Y/Y despite a $9M headwind tied to Winter Storm Uri. Better than expected results drove a Free Cash Flow (FCF) improvement of $41M Y/Y to -$21M and cash balance of $1.0Bn. Management raised Fiscal Year 2021 (FY21) guidance, including EBITDA of $1.1Bn-$1.25Bn (from $1.0Bn-$1.15Bn), Earnings Per Share (EPS) of $2.84-$3.56 (from $2.40-$3.12), and FCF greater than $450M (from >$350M). Additionally, peer Orica and private equity firms Littlejohn and One Rock are said to be among groups that submitted bids for the company’s Mining Solutions business. Binding bids are likely to come as soon as this month and are said to value the unit at over $600M (11% of the current market cap and 7% of FY20 revenue and EBITDA). Lastly, Chemours announced a CEO transition with Mark Vergnano moving to non-executive Chairman of the Board and COO Mark Newman becoming CEO effective July 1st. Mr. Newman has been with Chemours since the 2015 split from DuPont (DD), serving as CFO for four years before moving to the COO role in 2019.”