$27.64
-0.85 (-2.98%)
The Dow Chemical Company (DOW)
CAPS Rating:
The company offers a innovative chemical, plastic and agricultural products and services to customers in more than 175 countries, helping them to provide everything from fresh water, food and pharmaceuticals to paints, packaging and personal care.
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This CEO od DOW, don't care what his name is, should win a NOBEL PRIZE to how single-handedly destroy a legendary company. What a super idiot he is to buy another company in this market at 80% premium. What the hell is he thinking??? He should have his head examine by a psychiatrist. Shareholders must force him and the Board out right now.
Look at the deal overall. At current share prices, it looks bad. The timing could have definitely been better. But, no business can run if it is constantly in fear of future recessions/depressions. They made a move to be stronger in the future. It was a smart move, at the wrong time (bad luck), and with a contract that should have given them a way out (bad planning). But, long term, DOW will be stronger because of the deal. With a start price of $5.94, I suggest you close the pick, no way will it turn green for you.
I agree. DOW is a long-term outperform
Maybe he went to the Ken Lewis (BAC) school of "How to overpay for a company"
Actually he probably didn't do anything wrong, at the end of the day, both companies make money, granted if he had had a crystal ball he would have been able to figure out that GS actually was manipulating every facet of the economy and he would have known that oil was in a bubble. However when you have crooks manipulating the price of commodities the way they were being screwed with, it looked as though everything was going to go up forever. I don't hold him responsible, because he never went to the government like the banks and begged for rescue from a crisis that they created. In the future your call will go down as a bad one, I am sorry, the only hedge against what is coming is buying actual assets that generate money.
This popped up on my page today and made me laugh, after making the down pitch the company has gone up 123%, 2 other people recommended it as a good pitch. We all have our days my friend, bottom line is at that point in march or in January when the sky was falling up picks have won out but I am a yes man all the way so I have my issues too.
Have a good one!
SK
I bought some at $6.47 several months ago. Do you think that was a mistake?
The purchase is actually going to help them flatten their somewhat cyclical earnings and increase ROE through more highly profitable, less commoditized products. It will take time, but the price will recover over the longer term. The company just sold a bunch of shares at $15 and the stock has been holding its own in the $17-18 range.