Reuters Company Research

Chemtura Corporation (CEMJQ) 02 Sep 2009

Performance Rating: Outperform

1999 2009

Share Price Summary
Close Price on 9/2/09............................................. $0.75
Absolute Price Change on 9/2/09............................. -0.01
Percent Change....................................................-1.32%
Off 52-Week High...............................................-88.81%
Over 52-Week Low.......................................... 4587.50%
Beta............................................................................NA
Overview
Float (mil)........................................................... 241.100
10 Day Average Volume (mil)................................... 3.352
1 Day Volume Change on 9/2/09.........................-69.74%
Market Capitalization (mil).........................................$182
TTM Price/Earnings......................................................NA
Price/Earnings Current Fiscal Year Estimate...................NA
Percent Price Change CEMJQ S&P 500
Year to Date...............................-46.43.......... 10.13
One Year................................... -88.39......... -21.98
Two Years................................. -91.86......... -32.51
Three Years............................... -91.36......... -24.12
Five Years..................................-90.03......... -10.67
Ten Years.................................. -95.52......... -26.71

Table of Contents
Reuters Rating ....................................... 2 General Sentiment ..................................5 Footprints of Success ............................. 8
Getting Acquainted ................................. 3 Stock Price Rationale ..............................6
Share Price Trends .................................4 Expectations and Credibility .....................7

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Chemtura Corporation (OTC:CEMJQ) -- Chemical Manufacturing/Basic Materials Reuters Company Research

Performance Rating: Outperform

Reuters ratings are based on a proprietary model that leverages widely accepted statistical methods and financial concepts to select attributes shown to be strong indicators of future
stock price performance and applies these to rank stocks along a normal distribution curve. Ranks for Fundamental Quality, Value Catch-up, Operational Trends and Technical Factors
are combined into a Composite Rating of Outperform, Neutral or Underperform.

Reuters Composite Rating Component Rating Component Weight

We cannot guarantee that each stock will perform Types of investment criteria differ in how useful
in accordance with its rank. But we do believe that they are for predicting future stock movement.
over the long term, stocks rated Outperform (30% Based on our research, the Composite Rank
of all stocks we rate) will, in the aggregate, Fundamental Technical assumes these relative degrees of importance.
outperform stocks rated Neutral (40% of all stocks Quality Factors

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CEMJQ shares are presently rated OUTPERFORM. Value Catch-up 24%
No forecast is made for the stock market as a whole. Value Operational
However, we do believe that whichever way the market Catch-up Trends
moves, stocks rated OUTPERFORM have, in the
aggregate, a higher probability of performing better than "Under" = Underperform Technical Factors: Neutral
most others.
This rating is based on analyses of share price
movements over a variety of time periods. We
Fundamental Quality Component: Outperform compare performance characteristics of individual
This rating is based on characteristics traditionally associated with "good" companies. We focus on how each company stocks with those of all the others we rate.
measures up against others, and give careful attention to recent improvement or slippage relative to other companies. Generally speaking, our goal is to favor up-trending
TTM = Trailing Twelve Months. shares that have experienced recent corrections
and de-emphasize down-trending shares
Very Negative Negative Neutral Positive Very Positive
experiencing uncharacteristic periods of strength.
TTM Return on Investment Here is how CEMJQ shares performed during the
Improvement in TTM Return on Investment various periods we examined.
TTM Pretax Margin
Improvement in TTM Pretax Margin Price Change
Depreciation in Excess of Capital Spending Needs Past 7 days 7.1%
Past 30 days 56.3%
Issuance/Repurchase of Common Shares Past 60 days 224.7%
Common Shares Dilution
Presence/Absence of Unusual Income Items
Change for Past 180 Days: 177.8%
Value Catch-up Component: Outperform
$0.75
This rating measures the extent to which the share price adequately reflects improving or eroding fundamentals, and favors
shares whose prices have been slower to "catch up" to improving performance measures. TTM = Trailing Twelve Months. $0.27

Very Negative Negative Neutral Positive Very Positive

Open on 3/9/09 Close on 9/2/09
Price Catch-up with TTM Earnings
Price Catch-up to TTM Sales
Price Catch-up to TTM Free Cash Flow Change Between 60 and 30 Days Ago: 107.8%
Price Catch-up to MRQ Book Value

Operational Trends Component: Neutral

$0.23 $0.48
This rating reflects how strong a company's recent Sales and EPS (reported as per GAAP) growth have been relative to other
companies we rate. MRQ = Most Recent Quarter. TTM = Trailing Twelve Months. Open on 7/6/09 Close on 8/4/09
Very Negative Negative Neutral Positive Very Positive
Most Recent Quarter EPS Growth
Improvement in EPS Growth for Consecutive Quarters Change Between 180 and 60 Days Ago: -14.4%
Improvement in EPS Growth (MRQ vs. TTM)
Most Recent Quarter Sales Growth
Improvement in Sales Growth (MRQ vs. TTM)
$0.27 $0.23

Peer Comparison Open on 3/9/09 Close on 7/2/09

This section shows the comparison of key components between CEMJQ and several of its peers.
Composite Fundamental Technical Value Operational Change Between 180 and 90 Days Ago: 37.0%
Company Name (Ticker) Rating Quality Factors Catch-up Trends
Chemtura Corpor... (CEMJQ) Outperform Outperform Neutral Outperform Neutral
BASF SE (BAS) NA NA NA NA NA
Bayer AG (BAY) NA NA NA NA NA $0.27
Eastman Chemical Compan... (EMN) Neutral Outperform Outperform Underperform Underperform $0.37
Ciba Holding Inc. (CIBN) NA NA NA NA NA
Open on 3/9/09 Close on 6/5/09
Albemarle Corporation (ALB) Underperform Neutral Neutral Underperform Underperform

September 2, 2009 Page 2

Chemtura Corporation (OTC:CEMJQ) -- Chemical Manufacturing/Basic Materials Reuters Company Research

Getting Acquainted
Start your analysis by learning what the company does, how well it does it, where it stands relative to peers, and whether aspects of the corporate structure or capitalization are
bothersome to you.

Business Summary Contact Info

Chemtura Corporation, together with its consolidated subsidiaries, is a specialty chemical company. The Company is Chemtura Corporation is headquartered at:
engaged in manufacture and sale of specialty chemicals. It operates in a range of end-use markets, including 199 Benson Road, Middlebury, CT, 06749
automotive, transportation, construction, packaging, agriculture, lubricants, plastics for durable and non-durable United States
goods, electronics, and home pool and spa chemicals. The Company is a diversified producer of specialty chemicals (203) 573-2000
and polymer products and is a supplier of home pool and spa chemicals in United States. On February 29, 2008, www.chemtura.com
Chemtura completed the sale of the oleochemicals business. On January 31, 2008, Chemtura completed the sale of Stephen Forsyth, Investor Relations
the fluorine chemical business. In March 2009, Chemtura Corporation announced that the Company and 26 of its
United States affiliates have filed voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code
in the United States Bankruptcy Court for the Southern District of New York (the Court).

Financial Trends
TTM = Trailing Twelve Months, * = Most Recent Quarter.
Historic Growth Rates
Fiscal Year Ending 12/31/04 12/31/05 12/31/06 12/31/07 12/31/08 TTM 3 Year 5 Year 10 Year
Sales (mil) $2,285.2 $2,739.0 $3,458.0 $3,747.0 $3,546.0 $2,818.0 8.99 12.80 7.04
EPS (GAAP) ($0.37) ($1.21) ($1.14) ($0.19) ($4.02) ($3.67) NA NA NA
Dividends/Share $0.20 $0.20 $0.20 $0.20 $0.15 $0.05 (9.14) (5.59) 11.61
Book Value/Share $2.84 $7.40 $6.97 $7.65 $1.96 * $1.26 (35.80) (5.83) 7.76
Tangible Book Value/Sh. ($1.79) ($0.24) ($0.20) ($0.17) ($1.27) * ($1.72) NA NA NA
Cash Flow/Share $0.73 ($0.30) ($0.25) $0.95 ($3.04) ($2.85) NA NA NA
Free Cash Flow/Share ($0.45) ($1.23) $0.31 ($0.07) ($0.69) ($0.75) NA NA NA

Key Ratios
Historic Averages
Fiscal Year Ending 12/31/04 12/31/05 12/31/06 12/31/07 12/31/08 TTM 3 Year 5 Year 10 Year
% Sales Growth 17.7 19.9 26.3 8.4 (5.4) (24.9) 9.7 13.4 8.8
% EPS Growth (65.0) 229.5 (5.8) (83.6) 2,056.0 (200.6) 655.5 426.2 169.1
% Gross Margin 23.0 26.3 24.8 23.6 20.8 19.7 23.0 23.7 26.7
% Operating Margin (0.1) (1.7) (1.1) 1.6 (26.2) (29.5) (8.6) (5.5) (2.2)
% Tax Rate 54.3 (29.5) (85.7) (9.8) 2.7 NA (30.9) (13.6) 2.4
% Return on Assets (1.6) (5.6) (5.8) (1.0) (26.0) (24.5) (11.0) (8.0) (5.4)
% Return on Investment (2.2) (7.2) (7.3) (1.2) (39.0) (30.2) (15.8) (11.4) (7.5)
% Return on Equity (13.3) (20.4) (15.8) (2.5) (83.6) (92.1) (34.0) (27.1) (24.3)
Asset Turnover 0.9 0.7 0.7 0.9 0.9 0.8 0.8 0.8 0.8
Receivables Turnover 10.1 6.9 7.8 10.3 9.1 6.0 9.0 8.8 9.0
Inventory Turnover 4.5 3.9 3.9 4.3 4.4 3.6 4.2 4.2 3.9

Equity Information Analyst Footnotes

Whether you are willing to accept companies that have or don't have major shareholders with controlling ownership blocks, Look for accounting changes, restructurings,
multiple classes of common, or convertible debt or preferred issues is a matter of individual preference. Look here for etc.which may affect how useful historic data is
anything along these lines that might make you more or less inclined to invest in this company. inassessing future company prospects.
Common Stock $.01 Par, 6/09, 500M auth., 254,500,000 issd. less 11,500,000 shs. in Treas. @ $167M. Insiders own less than 1% 5/00, Name changed from CK Witco Corporation. 5/92,
(incl. 561K in options). PO 12/92, 5M shares (2M by Co.) @ $20.50 by Salomon Bros. 03/09, Company delisted from NYSE to OTC pink 7/90, 6/89, 2-for-1 stock splits. FY'94 - FY'95 Q's
sheets. restated for 8/96 pooling with Uniroyal Chemical for
23.7M Common.

Peer Comparison
This table gives an indication of how Chemtura Corporation stands in key respects compared with companies in the Chemical Manufacturing Industry
Current Fiscal Current Fiscal P/E Based on
Last Fiscal Year Year Projected Projected Year Projected Current Year EPS % Growth EPS % Growth
Company Name (Ticker) Revenue (mil) Revenue (mil) Price/Sales Operating EPS EPS Estimates Previous 5 Years Next 5 Years
Chemtura Corpor... (CEMJQ) $3,546.0 $2,744.9 0.1 ($4.02) $0.00 NA NA NA
BASF SE (BAS) NA NA NA NA NA NA NA NA
Bayer AG (BAY) NA NA NA NA NA NA NA NA
Eastman Chemical Compan... (EMN) $6,726.0 $4,998.3 0.7 $4.32 $2.91 17.2 NA 6.5
Ciba Holding Inc. (CIBN) NA NA NA NA NA NA NA NA
Albemarle Corporation (ALB) $2,467.1 $2,043.4 1.4 $2.10 $1.76 18.1 19.0 9.0
FMC Corporation (FMC) $3,115.3 $2,949.2 1.2 $4.35 $4.11 11.6 50.7 8.0
Cytec Industries Inc. (CYT) $3,639.9 $2,705.4 0.5 ($4.16) $0.67 40.7 NA 4.5

September 2, 2009 Page 3

Chemtura Corporation (OTC:CEMJQ) -- Chemical Manufacturing/Basic Materials Reuters Company Research

Share Price Trends

Stock price trends depict the collective opinion of the investment community. You don't have to agree with consensus views but seeing how others feel can help you decide what to
look for as you go further in your analysis. Consider it similar to reading a review before seeing a movie.

1 Year Price Chart with Bollinger Bands and Relative Strength

Technical analysts believe a narrowing of the bands suggests a significant price movement, up or down, will soon occur. Also, many say stocks that move outside the bands and then
back inside will soon move toward the opposite band. The Relative Strength Index (RSI) calculates the strength of the current price movement compared to other recent moves and
may signal when a trend is unsustainable. Technical analysts also believe RSI peaks/valleys forecast changes in share price trends.

High: 6.60

$6.00

4.10

2.20

0.30

Low: .02

Relative Strength Indicator 100%

50%

Volume (mil)

Average Volume
4.83
Sep' 08 Oct Nov Dec Jan' 09 Feb Mar Apr May Jun Jul Aug

10 Year Price Chart (Monthly) 5 Year Price Chart (Monthly)

$17.00 $17.00

12.00 12.00

7.00 7.00

2.00 2.00

0.03 0.05
2000 2001 2002 2003 2004 2005 2006 2007 2008 Vol (bil) 2005 2006 2007 2008 2009 Vol (bil)

6 Month Price Chart (Daily) 1 Month Price Chart (Daily)

$0.80 $0.80
0.70
0.60 0.70
0.50
0.40 0.60
0.30
0.50
0.20
0.10
0.40

7.28 3.78

Apr' 09 May Jun Jul Aug Vol (mil) Aug' 09 Vol (mil)

September 2, 2009 Page 4

Chemtura Corporation (OTC:CEMJQ) -- Chemical Manufacturing/Basic Materials Reuters Company Research

General Sentiment
You can follow popular opinion or choose a contrarian's strategy. Either way, you should know whether the Street is bullish or bearish. Investor sentiment is typically positive when
the 50-day moving average is rising, especially if it's also above the 200-day moving average. Additionally, changes in price trend can be deemed more definitive if supported by
higher than normal volume.

52 Week Price History

200 Day Moving Average

$6.00

4.10

2.20

0.30
50 Day Moving Average
Volume (mil)
Average Volume
4.81
Sep' 08 Oct Nov Dec Jan' 09 Feb Mar Apr May Jun Jul Aug

Price History
Calendar Year 2000 2001 2002 2003 2004 2005 2006 2007 2008
High Price 14.19 12.19 13.00 7.75 11.80 17.95 13.53 12.33 8.81
Low Price 6.94 6.20 5.44 3.63 5.02 9.89 7.75 6.95 1.02
Year End Price 10.50 9.00 5.95 7.17 11.80 12.70 9.63 7.80 1.40

High P/E 14.57 NA NA NA NA NA NA NA NA

Low P/E 5.27 NA NA NA NA NA NA NA NA
Year End P/E 13.37 NM NM NM NM NM NM NM NM
Dividend Yield 1.90 2.22 3.36 2.79 1.69 1.57 2.08 2.56 10.71

Price Performance Insider Trading

When stocks significantly beat or trail the S&P 500 or the industry, investors are looking more intently at company- specific Insider buying can be seen as bullish because,
matters than general-market factors. In the two percentile rank columns, a high "Rank in Industry" coupled with a low presumably, their company knowledge is superior.
"Industry Rank" could signify a hot stock in a cold industry. The reverse, is also noteworthy. However, insider sales are less reliable because
insiders may sell for a variety of reasons that have
Actual Percent vs. vs. Rank in Industry
nothing to do with their opinion of the stock.
Time Period Change Change S&P 500 Industry Industry Rank
4 Week 0.22 40.2% NA 44.7% 93 25
In the last 6 months, there have been no insider
13 Week 0.47 168.8% NA 154.2% 98 30 purchases, and there has been 1 insider sale of 6,000
26 Week 0.29 63.0% NA 12.9% 64 42 shares.
52 Week (5.79) (88.5)% NA (84.9)% 11 32
Net Change (6 months) (0) mil
Year To Date (0.65) (46.4)% NA (59.8)% 14 71 6 Month Net Transactions (1)

BarChartKey Rank Key Institutional Ownership

YTD R 4 Wk. Worst R Best 1 R 100 It's worthwhile to know what institutions are doing
simply because their stock positions can be so
Short Interest large. In the short term, stocks will perform well if
institutions are buying and perform poorly if
A high or increasing short interest implies that many investors expect the stock price to decline. You can treat that as a institutions are selling.
warning. Or you can disagree with the crowd and buy stocks with high short interest in anticipation of a short squeeze (a rally
that occurs when short sellers rush to buy a stock, fearing losses they might incur if they wait too long). Prospects for a 64 institutions own 26.8% of the 0.24 billion common
squeeze are indicated by high readings in the "Days to Cover" column (which tells how many days it would take for all short shares outstanding. This is lower than the average
interest positions to be covered if recent trading volume levels persist). The risk: The bears may be right. So research other institutional ownership of the Chemical Manufacturing
aspects of the company. Industry at 39.4%, and lower than the average of the
Month Shares % Outstanding Percent of Float Days to Cover S&P 500 as a whole which is 69.4%.
August 2009 2,143,000 0.88 0.89 0.83 Net Change (3 month) (17.0)%
July 1,847,000 0.76 0.77 1.05 Net Purchases (3 month) (53.08) mil
June 2,086,000 0.86 0.87 1.21 Shares Purchased (3 month) 1.47 mil
May 2,535,000 1.04 1.05 0.76 Shares Sold (3 month) 54.54 mil

September 2, 2009 Page 5

Chemtura Corporation (OTC:CEMJQ) -- Chemical Manufacturing/Basic Materials Reuters Company Research

Stock Price Rationale

Determine if the stock price is justified by: growth-based value, comparative value, liquid assets, or dividends. The better the company, (in terms of growth or quality), the higher the
valuation measures can be. And if valuation ratios are extremely low, double-check to see if the company appears excessively weak. In any case, you don't have to say yes to any
valuation measure - many buy shares based on other factors (e.g., growth). But if you do that, at least understand what you're doing and consider the risks.

Viewing Things In Context

Many people erroneously work with valuation ratios calculated based on numbers that aren't truly representative of a company's underlying sustainable financial characteristics. Thus
it's important to determine if today's sales and EPS are significantly depressed or elevated due to temporary factors such as business cycles. Higher ratios can be tolerated if sales and
EPS are temporarily depressed. But if the company is experiencing unsustainable boom conditions, seek lower ratios. GAAP = Generally Accepted Accounting Principles.

Fiscal Year Ending 12/31/02 12/31/03 12/31/04 12/31/05 12/31/06 12/31/07 12/31/08 12/31/09E 12/31/10E
Sales/Share $18.41 $17.26 $19.92 $15.35 $14.38 $15.51 $14.63 $11.33 $11.78
Price/Sales NA NA 0.59 0.85 0.66 0.47 0.11 0.07 0.06
EPS (GAAP) ($0.31) ($1.05) ($0.37) ($1.21) ($1.14) ($0.19) ($4.02) $0.00 $0.16
P/E (GAAP) NA NA NM NM NM NM NM NA 4.69
EPS (Normalized) ($0.17) ($0.36) $0.21 ($0.18) ($0.47) $0.10 ($1.20) $0.00 $0.16
P/E (Normalized) NA NA 55.83 NM NM 75.03 NM NA 4.69
Dividend Yield (%) NA NA 1.69 1.53 2.10 2.77 9.74 0.00 0.00

Valuation Based On Growth

The faster a company grows, the higher its stock's P/E can be. Contrary to popular belief, PEG (P/E over Growth Rate) need not always be 1.00 or less. But all else being equal, lower is
better (and 3.00 is usually too high). Try to favor company PEGs that are lower than industry and market PEGs. In all cases, watch for very high growth estimates. If overly optimistic
projections get cut, PEG would wind up being higher. FY = Fiscal Year.

Price/EPS (Est.) for Current FY Price/EPS (Est.) for Next FY Long Term Growth Estimate Next FY P/E over LT Growth
Chemtura Corporation NA 4.69 NA NA
Chemical Manufacturing 17.38 16.03 11.96 1.54
S&P 500 17.45 14.68 10.29 1.99

Comparative Valuation Ratios Dividends

Valuation below industry or S&P 500 averages can be attractive - unless the company is materially worse in terms of quality Dividend is the most classic basis for
growth prospects. Year-by-year trends in comparative valuations can give clues about company merit. Be especially on guard stockvaluation, and high dividend yields are
if comparative ratios are deteriorating over time. On the other hand, relatively low valuations that are moving toward the usuallydeemed preferable. Today, with many
averages might indicate that the market is tuning in to heretofore under-appreciated company merit. companiesreinvesting profits back into the
FY = Fiscal Year, TTM = Trailing Twelve Months, * = Most Recent Quarter. business, moderateor low yields can be accepted if
Chemtura Corporation dividends growrapidly. The main risk is that poor
performance willcause the dividend to be cut or
Price/ Price/ Price/ Price/ Price/ Price/Free omitted. A very highpayout ratio is one warning
Earnings Sales Book Cash Flow Tang. Book Cash Flow signal. Another is ayield that is very high relative to
Trailing 12 Months NA 0.06 * 0.59 NA * NA NA industry peers.
FY Ending 12/31/08 NM 0.11 0.79 (0.51) (1.22) (2.22) TTM = Trailing Twelve Months.
FY Ending 12/31/07 NM 0.47 0.94 7.58 (42.63) NM
FY Ending 12/31/06 NM 0.66 1.36 (38.77) (46.73) 30.50
FY Ending 12/31/05 NM 0.85 1.77 (43.15) NM (10.64) CEMJQ Industry
Current Dividend Yield NA 2.5%
5 Yr. Avg. Dividend Yield 0.2% 1.9%
Bar Chart Key 5 Yr. Dividend Growth Rate (5.6)% 21.4%
2005 R TTM TTM Payout Ratio NA 24.4%
5 Yr. Average Payout Ratio NA 29.4%
Chemical Manufacturing
Price/ Price/ Price/ Price/ Price/ Price/Free
Earnings Sales Book Cash Flow Tang. Book Cash Flow
Trailing 12 Months 23.83 2.01 * 3.71 12.88 * 6.76 45.45 Liquid Assets
FY Ending 2008 21.88 3.48 5.25 15.79 8.04 17.74
FY Ending 2007 25.93 2.37 3.64 14.35 4.44 45.41 Get a general sense of the extent to which the
FY Ending 2006 24.68 1.83 3.92 12.49 6.99 18.58 stockprice is offset by the presence of assets that
FY Ending 2005 29.02 1.69 3.53 11.72 6.76 28.52 can beconverted to cash immediately or in the near
future. Often, these ratios will not be meaningful.
Most companies are valued as ongoing businesses,
rather than liquidation/buyout prospects. If you're
Bar Chart Key lookingat an especially troubled company, be aware
2005 R TTM
that seemingly liquid-asset windfalls can be
dissipatedby continuing operating losses and/or
S&P 500
shutdown costs.
Price/ Price/ Price/ Price/ Price/ Price/Free
Earnings Sales Book Cash Flow Tang. Book Cash Flow
Trailing 12 Months 19.60 2.07 * 3.38 12.82 * 5.72 23.31 Price to ... CEMJQ Industry
FY Ending 2008 16.57 2.23 3.36 9.82 3.18 22.23 General Working Capital 0.2 7.5
FY Ending 2007 22.60 2.83 4.14 15.01 5.80 27.07 (current assets minus current liabilities)
FY Ending 2006 20.75 2.92 3.86 14.13 5.36 30.45
FY Ending 2005 24.06 3.27 4.33 16.29 6.19 21.35 Net Working Capital (0.1) 13.2
(current assets minus all liabilities)

Bar Chart Key Cash (& cash equivalents) 1.3 29.4

2005 R TTM Cash minus total debt (1.6) (7.8)
Cash minus all liabilities (0.1) (2.6)

September 2, 2009 Page 6

Chemtura Corporation (OTC:CEMJQ) -- Chemical Manufacturing/Basic Materials Reuters Company Research

Expectations And Credibility

In theory, stock prices are based on the "present value" of expected future company cash flows. Therefore, we try to obtain accurate estimates of future financial performance. But
remember, these are just estimates. Since we cannot really know what will happen tomorrow, we evaluate estimates critically by seeking clues that help us distinguish between
normal versus excessive degrees of uncertainty.

Estimates In Context
Below are the present consensus revenue and EPS estimates. Notice whether analysts expect recent year-to-year growth trends to persist, or are forecasting sharp improvement or
deterioration. The sharper the predicted change, the greater the level of uncertainty in the forecast. (GAAP = Generally Accepted Accounting Principles)

Revenue ($mil) GAAP Earnings Per Share ($)

Mar 31st Jun 30th Sep 30th Dec 31st Year Total Mar 31st Jun 30th Sep 30th Dec 31st Year Total
FY Ending 12/2006 871.0 971.0 2,649.0 809.0 3,458.0 0.05 (0.01) (0.36) (0.77) (1.14)
FY Ending 12/2007 889.0 1,038.0 929.0 891.0 3,747.0 (0.08) (0.10) 0.00 (0.01) (0.19)
FY Ending 12/2008 909.0 1,023.0 924.0 690.0 3,546.0 (0.09) (1.13) 0.05 (2.85) (4.02)
FY Ending 12/2009 517.0 687.0 777.5 E 648.2 E 2,744.9 E (0.39) (0.49) 0.06 E 0.03 E 0.00 E
FY Ending 12/2010 NA E NA E NA E NA E 2,854.1 E NA E NA E NA E NA E 0.16 E

Confidence In Estimates EPS Estimate Accuracy

The range of estimates can be measured by standard deviation. The narrower the range (the lower the standard deviation Assess the extent to which analysts are
compared to the "mean" estimate) and/or the greater the number of analysts, the more definitive the expectations. Note, too, accurateand have a handle on the earning trends
the extent to which company expectations are consistent with or diverge from those for industry and/or market. bycomparing Estimates to Actual figures (which
mayomit various charges/credits included in
Long Term Growth Rate Near Term Growth Rate GAAPresults). The Actual figures are the ones that
Mean # of Estimates Standard Dev. Mean # of Estimates Standard Dev. aremost comparable in accounting method to the
Estimates. (GAAP = Generally Accepted Accounting
NA NA NA CEMJQ NA 1 0.00
Principles)
12.0 2 5.57 Industry (12.2) 5 10.54
10.3 6 3.20 S&P 500 12.6 13 10.43 Quarter Estimate Actual GAAP
03/09 qtr. ($0.09) ($0.11) ($0.39)
Reasonableness 12/08 qtr. ($0.06) ($0.14) ($2.85)
09/08 qtr. $0.10 $0.11 $0.05
Look at the tables below to see if analysts are expecting the company to accomplish more than it has accomplished in the 06/08 qtr. $0.18 $0.18 ($1.13)
past. Such things can and do happen. But the stronger the predicted future (compared to the past), the greater the burden of 03/08 qtr. $0.08 $0.10 ($0.09)
proof on the part of those issuing the estimates.

Annual Growth EPS (%) Sales (%) Quarterly Growth EPS (%) Sales (%) Quarterly EPS Estimate Revisions
5 year Estimate NA NA 09/09 qtr. Estimate (45.5) (15.9)
2009 Estimate NA (22.6) 06/09 qtr. Estimate (94.4) (21.6) 06/09 qtr.
Last 5 years NA 12.8 03/09 qtr. NA (43.1)
Last 3 years NA 9.0 12/08 qtr. NA (22.6) $0.18
Last Year (2,056.0) (5.4) 09/08 qtr. 37.5 (2.7) 0.16
Trailing 12 Months (200.6) (24.9) 06/08 qtr. 5.9 (3.4) 0.13
0.11
Analyst Recommendation Trends Nov Feb May Aug

Difference of opinion is normal, so don't demand unanimity. Look for ratings clusters in a part of the best-to-worst scale and 09/09 qtr.
at Mean Rating scores. Also important is whether analyst sentiment is improving or declining over time. $0.11
0.09
Buy Outperform Hold Underperform Sell Mean
0.06
(Value 1) (Value 2) (Value 3) (Value 4) (Value 5) Rating
As of 9/2/09 0 0 1 0 0 3.00 0.04
As of 4 Weeks ago 0 0 1 0 0 3.00 Nov Feb May Aug
As of 8 Weeks ago 0 0 1 0 0 3.00 12/09 qtr.
As of 12 Weeks ago 0 0 1 0 0 3.00
$0.04
0.02
Bar Chart Key Mean Rating -0.01
12 Wks ago R 9/2 1.00 = Best -0.03
5.00 = Worst Nov Feb May Aug

Annual EPS Estimate Revisions

Since estimates address an unknowable future, revision (often prompted by company guidance) is to be expected. Investors are usually happy when analysts are scrambling to chase
reality upward. So increases in estimates tend to spark strong share price performance. The reverse is usually true when estimates are falling.
Gap in Coverage Negative Surprise Positive Surprise As Expected EPS
$0.79
$6.00
FY 2005
0.57
4.10
0.36

2.20
0.15

0.30 FY 2004
FY 2003 -0.07
Sep' 08 Oct Nov Dec Jan' 09 Feb Mar Apr May Jun Jul Aug

September 2, 2009 Page 7

Chemtura Corporation (OTC:CEMJQ) -- Chemical Manufacturing/Basic Materials Reuters Company Research

Footprints of Success
In many respects, business success requires subjective judgment. However, over time, good companies tend to leave good footprints, which become most visible when company data
is compared to industry/sector/market benchmarks. That's how you see when companies perform well, not just because a rising business tide lifts all boats, but because the company
is doing unique, good things. Look, too, at time-series comparisons, and take note of companies that are improving faster or suffering less than peers.

Growth Rates (%)

Investors are accustomed to looking at EPS growth. Check sales growth, too. EPS gains can't persist indefinitely without good sales growth. Do further investigation if sales trends are
falling short. (A big short fall might reflect a divestiture. On the other hand, if sales growth looks too good, check to see if it's being boosted by an acquisition.) Also, compare sales
growth to capital spending growth. Over a prolonged period, it's reasonable to expect capital spending growth to more or less keep pace with sales growth. If the latter is significantly
higher, capital spending may have to accelerate in the next few years.
Company Rank CEMJQ CEMJQ CEMJQ
% Growth Rate CEMJQ Industry Sector S&P 500 in Industry vs. Industry vs. Sector vs. S&P 500
Sales Growth For Most Recent Quarter (32.8) (23.8) (25.0) (9.8) NA
Sales Growth For Trailing 12 Months (24.9) (2.6) (10.9) (3.6) 18
Sales Growth For Past 5 Years 12.8 16.7 17.0 13.3 59

Capital Spending Growth for Past 5 Years 6.7 23.4 24.5 12.7 32

EPS Growth for Most Recent Quarter 56.9 (32.7) (30.3) (15.9) NA
EPS Growth for Trailing Twelve Months (200.6) (15.2) (26.4) (13.3) NA
EPS Growth for Past 5 Years NA 37.6 29.3 18.1 NA NA NA NA
Worst R Best = Co. underperforming = Co. outperforming

Company Quality
Some companies excel in obtaining high margins (watch out for very low tax rates, which may reflect special benefits that often won't persist indefinitely) while others are highly
efficient. Still others are strong in both respects. These trade-offs are balanced in the Management Effectiveness returns, which combine both factors. TTM = Trailing Twelve Months.

Company Rank CEMJQ CEMJQ CEMJQ

Profitability Ratios (%) CEMJQ Industry Sector S&P 500 in Industry vs. Industry vs. Sector vs. S&P 500
Gross Margin for Trailing Twelve Months 19.7 36.6 28.8 45.6 31
Gross Margin for Past 5 Years 23.6 33.7 30.8 45.8 39
Operating Margin for Trailing Twelve Months (29.5) 15.0 10.1 14.2 10
Operating Margin for Past 5 Years (6.1) 12.7 13.7 19.1 23
EBITD Margin for Trailing Twelve Months (22.5) 20.3 15.6 20.7 11
EBITD Margin for Past 5 Years (0.0) 17.0 18.7 22.8 30
Pretax Margin for Trailing Twelve Months (33.0) 14.2 9.0 13.3 7
Pretax Margin for Past 5 Years (9.2) 11.4 12.6 18.2 19
Net Margin for Trailing Twelve Months (31.6) 10.4 1.2 8.6 8
Net Margin for Past 5 Years (9.8) 8.3 8.6 12.6 18
Effective Tax Rate for Trailing Twelve Months NA 25.5 27.9 29.7 NA NA NA NA
Effective Tax Rate for Past 5 Years NA 29.6 30.5 30.5 NA NA NA NA
Company Rank CEMJQ CEMJQ CEMJQ
Efficiency Ratios (TTM) CEMJQ Industry Sector S&P 500 in Industry vs. Industry vs. Sector vs. S&P 500
Asset Turnover 0.8 0.8 0.8 0.9 41
Receivables Turnover 6.0 6.4 7.9 10.1 37
Inventory Turnover 3.6 5.6 5.8 10.7 27
Revenue/Employee $599,574 $673,950 $544,541 $842,040 64
Net Income/Employee $(189,362) $107,575 $79,623 $94,212 NA
Company Rank CEMJQ CEMJQ CEMJQ
Management Effectiveness Ratios (%) CEMJQ Industry Sector S&P 500 in Industry vs. Industry vs. Sector vs. S&P 500
Return on Assets for TTM (24.5) 8.7 2.0 6.3 29
Return on Assets for Past 5 Years (8.0) 7.1 7.9 8.7 29
Return on Investment for TTM (30.2) 10.0 3.3 9.1 21
Return on Investment for Past 5 Years (10.5) 9.3 10.1 12.4 18
Return on Equity for TTM (92.1) 16.7 9.8 16.2 13
Return on Equity for Past 5 Years (25.7) 18.1 20.8 20.2 13
Worst R Best = Co. underperforming = Co. outperforming

Financial Strength
Quick Ratio (cash and marketable securities divided by current liabilities) and Current Ratio (all current assets divided by current liabilities) give a sense of how readily the company
could cover current obligations if the sales were to stop. Higher ratios indicate greater liquidity. Different businesses have different cash inflow-outflow characteristics, so compare
companies to industry averages. Similar comparisons are relevant for debt ratios (higher ratios indicate more debt and, hence, more financial risk) and interest coverage (lower
numbers signify greater risk).
Company Rank CEMJQ CEMJQ CEMJQ
CEMJQ Industry Sector S&P 500 in Industry vs. Industry vs. Sector vs. S&P 500
Quick Ratio 1.4 1.4 1.6 1.4 52
Current Ratio 2.2 2.2 2.5 2.0 62
Total Debt to Equity 83.1 107.7 97.7 81.9 32
Long Term Debt to Equity 0.7 92.4 87.3 68.3 68
Interest Coverage (11.4) 16.2 5.9 11.3 21
Worst R Best = Co. underperforming = Co. outperforming

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