In a market hungry for spin-offs, CNBC's Jim Cramer keeps an eye out for company break-ups that could prove to be lucrative for investors.
That's why the "Mad Money" host caught sight of the "corporate divorce" between commodity chemical giant Huntsman and its recently spun-off entity, Venator Materials, which came public at $20 a share and has since reached $23.
Cramer thought Huntsman timed the spin-off very well. Venator took Huntsman's titanium dioxide business just as demand in the titanium dioxide industry started to pick up again.
Plus, Venator has its hands in the recovering U.S. and European markets, and Cramer thinks Europe's economic rebound will be strong and long-lasting.
"Venator Materials may not be the sexiest company ever, but ... this spinoff came at the ideal moment, right when Venator's core titanium dioxide business is experiencing a real renaissance," Cramer said. "This story has a lot going for it, more than almost all the other spin-offs I've heard of, and unlike so much of the market, this is a cheap stock. I say the potential rewards dramatically outweigh the risks and Venator's stock makes a ton of sense to buy in this wildly pro-spin-off market."