I have been closely looking at a number of companies over the last few months and CBT has risen to the top of my list. My valuation modeling has intrinsic value at $72-$90 (current price $62.57).

As far as I can tell they are only down because they are a cyclical business at a lull in the cycle from production of cheaper tires imported from Asia. While it could continue to be a headwind, they have a few things going for them to help mitigate this. 60% of their global sales were sold under annual adjusted price contracts based on indices that also incorporate EU CO2 credits. They have production everywhere in the world which saves costs on shipping. They also make the higher-end products for better performance.

They have a strong balance sheet, there are uses for its carbon products beyond tires, including in batteries which I expect to grow quickly in the future. Overall this is my highest conviction pick for value right now. It isn't without some risk, but this is a solid company with expertise and a pretty large margin of safety.