Chemiсals and pharmaceuticals
July 11, 2007Concern Stirol: time to change
Concern Stirol, a major and the most diversified Ukrainian nitrogen fertilizer producer, is set to either change its mode of operations or become unprofitable. The main reason for future losses of current Stirol is the unavoidable rise in natural gas prices. Stirol already missed an earlier IPO opportunity, and will have no cards to play beyond Fall 2007. At that time, the company can either initiate a half-way Internal Change, or undergo an External Re-evaluation via changes in ownership. A cleanup of all business segments, necessary in both cases, would only be explicitly demonstrable within the External Re-evaluation scenario. Speculation on management’s desire to be re-evaluated is an attractive, but risky, investment opportunity.