Element Solutions (ESI)

It's a solid turnaround story under new managers. He recommended this as a spec play before. You can buy a small position now. If it pulls back, add more. The market doesn't cover this much. ESI is exposed to some excellent end markets. Shares were quiet in October, but last week ESI reported yet around strong quarter, but messy guidance.

A specialty chemical company. Used to be a blank-cheque company which tumbled in 2015-6 after aggressively taking over companies and facing rising interest rates, then did nothing despite rebranding in 2019. Since then, business has surged along with the economy in the reopening. Since 2019, they've divested some businesses and replaced CEOs. electropnics make up 63% of sales, the rest from industrial and specialty like oil drilling. All their end markets are doing better after several negative quarters. Their organic growth has turned positive and accelerated. Also, they're issuing positive guidance and boosting their dividend. The balance sheet has improved. Last month, they made a small purchase of a specialty chemical company. Overall, their exposure in various business is good and their balance sheet is healthier. Trades at less than 15x 2022's PE. This is now a steal if their end markets keep going, but worth only a small investment at first.