$15.12 -0.86 (-5.38%)
7/2/2009 4:16 PM

The Dow Chemical Company (DOW)

CAPS Rating: 4 out of 5

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.

Current Price $15.12 Mkt Cap $17.78B
Open $0.00 P/E Ratio 21.79
Prev. Close $15.98 Div. (Yield) 0.60 (3.80%)
Daily Range $15.12 - $15.74 Volume 0
52-Wk Range $5.89 - $39.99 Avg. Daily Vol. 0

DOW News and Articles

All stories about DOW

Caps

How do you think DOW will perform vs the S&P 500?

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All Members

2,065 Outperform
114 Underperform
 

All-Star Members

776 Outperform
26 Underperform
 

Wall Street

15 Outperform
1 Underperform
 

Top DOW Bull/Bear Pitches

The best Bull and Bear pitches based on recency and number of recommendations.

samsuh (< 20)
Submitted March 10, 2009

Though they got themselves into a bit of a mess with ROH, it should help out their bottom line in a few years once dow has digested this acquisition. look past the effective 78$ price tag to the negotiation terms. a judge did not force them to do… More

ltn2000 (< 20)
Submitted March 10, 2009

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… More

DOW VS S&P 500 (SPY)

Recent Community Commentary

Read the most recent pitches from members about DOW.

Recs

0
Member Avatar mdpurdon (32.73) Submitted: 7/1/2009 11:20:25 AM : Outperform Start Price: $16.19 DOW Score: -3.23

Movements in the bio fuel sector will produce gains

Recs

0
Member Avatar DaveOfDukeIPO (55.96) Submitted: 6/30/2009 4:46:32 PM : Outperform Start Price: $11.85 DOW Score: +24.07

paid out a dividend of $0.15

Recs

0
Member Avatar jed71 (43.18) Submitted: 6/24/2009 9:00:08 PM : Outperform Start Price: $18.26 DOW Score: -12.71

The Rohm and Haas purchase was a complete debacle. Andrew Liveris should have been fired over the mismanagement of that M&A decision. The dividend was reduced from ~$0.37 to $.05. The crisis in this company was at one point so strong, there was a small possibility that they may have been forced into bankruptcy (as evidenced by the $5+ stock price in March). But not anymore.

The Rohm and Haas purchase has been completed. Since the shotgun wedding of these two goliaths, DOW has had to take out a bridge loan of $9.2BB and issue additional stock in order to pay for the $15BB purchase price of ROH. DOW has correctly recognized they now have a large debt problem (duh!). DOW has begun breaking off non-core businesses, such as Morton and its interest in a refinery in the Netherlands, and putting them up for sale. DOW is using the money from these sales to pay down debt from the bridge loan. It will take some time, but DOW will successfully pay back the bridge loan and once again be prepared to grow its business.

The face of DOW’s commodity business is changing dramatically. The purchase of ROH will be the catalyst for DOW to shift its business model from a commoditized chemicals company, to a more specialized chemicals firm that will enable it to generate higher operating margins and more cash. It will also help the company to avoid the earnings troughs that come about every 5 years and drive its stock price into the tank. It will still be in the basic chemicals business, but those units will not dominate the largest portion of the overall company earnings. Its exposure to peaks and troughs will have been greatly mitigated.

The purchase of ROH has enabled the company to become a growth company once more. They can leverage their existing customer base and have an expanded product line / offering beyond the commoditized chemicals. The margins captured on the newer lines are going to generate much higher profits / cash with much less volatility. This may not play out for a few years, but I do believe this will be a multi-bagger over time. $15 a share is a steal considering future growth and cash generation.

Leaderboard

Find the members with the highest scoring picks in DOW.

Score Leader

ChrisGraley

ChrisGraley (98.35) Score: +124.48

I bailed right before profit taking.

Top
Pick
Member Name Member
Rating
Start
Date
Call Time
Frame
Start
Price
Stock
Gain
S&P
Gain
Score Commentary
btown819 96.79 3/10/2009 Outperform 5Y $6.13 +146.63% +26.10% +120.53 1 Comment
samsuh < 20 3/10/2009 Outperform 3Y $6.16 +145.46% +26.39% +119.08 2 Comments
too2dumb < 20 3/12/2009 Outperform 3M $6.26 +141.64% +23.67% +117.97
imabugger < 20 3/12/2009 Outperform 5Y $6.26 +141.64% +23.67% +117.97 1 Comment
KingOfTown 62.19 3/9/2009 Outperform NS $6.16 +145.46% +31.34% +114.12
skibum0626 90.71 3/9/2009 Outperform 5Y $6.16 +145.46% +31.80% +113.66
flats1966 95.55 3/11/2009 Outperform 5Y $6.38 +136.84% +23.50% +113.34
Piky 65.11 3/9/2009 Outperform 3M $6.16 +145.46% +32.25% +113.21
kaliblade 47.31 3/9/2009 Outperform 5Y $6.16 +145.46% +32.25% +113.21
mkrauss123 92.20 3/9/2009 Outperform NS $6.16 +145.46% +32.37% +113.09

Wall Street

See what the Wall Street professionals think, according to their public statements and filings.

Member Name Member
Rating
Start
Date
Call Time
Frame
Start
Price
Stock
Gain
S&P
Gain
Score End Date Commentary
TrackJimCramer 64.82 5/14/2009 Outperform 3W $16.36 -7.59% +0.41% -8.00
TrackCreditSuiss 89.18 5/11/2009 Outperform NS $16.90 -10.51% -2.06% -8.45
TrackTobinSmith < 20 5/8/2009 Outperform 1Y $17.33 -12.76% -3.41% -9.35
TrackEinhorn 98.57 2/25/2009 Outperform 1Y $7.72 +95.87% +16.42% +79.45 2 Comments
TrackHSBC 92.91 2/9/2009 Underperform NS $10.52 +43.77% +3.28% -40.50
TrackJimCramer 64.82 1/27/2009 Underperform 3W $12.98 +27.27% +6.83% -20.45 5/15/2009 @ $16.52
TrackHilliard 88.38 12/30/2008 Outperform NS $15.01 +0.73% +2.51% -1.78
TrackRichAster 95.91 6/17/2008 Outperform 1Y $35.96 -57.96% -34.41% -23.55 1 Comment
TrackUBS 86.07 6/10/2008 Outperform NS $36.21 -58.25% -34.03% -24.22
TrackJimCramer 64.82 1/7/2008 Outperform 3W $35.04 -62.36% -40.70% -21.66 1/28/2009 @ $13.19
TrackDreman 91.15 12/31/2007 Outperform NS $36.21 -58.24% -38.57% -19.67 2 Comments
TrackJimCramer 64.82 10/29/2007 Underperform 3W $44.73 -16.87% -8.40% +8.48 1/7/2008 @ $37.18
TrackHAndW < 20 9/30/2007 Outperform NS $39.15 -61.38% -41.14% -20.24 2 Comments
TrackDodgeCox 92.97 9/30/2007 Outperform NS $39.15 -61.38% -41.14% -20.24 2 Comments
TrackBrandes < 20 9/30/2007 Outperform NS $39.15 -61.38% -41.14% -20.24 2 Comments
TrackJohnKeeley < 20 9/30/2007 Outperform NS $39.15 -61.38% -41.14% -20.24 1 Comment
TrackSoros 79.40 9/30/2007 Outperform NS $39.15 -61.38% -41.14% -20.24 1 Comment
TrackMatrix 88.79 8/3/2007 Outperform NS $40.06 -62.25% -39.02% -23.23
TrackLehmanBros 80.65 6/5/2007 Outperform NS $41.26 -63.36% -41.58% -21.77
TrackHSBC 92.91 3/20/2007 Outperform NS $41.22 -73.83% -37.96% -35.87 2/9/2009 @ $10.79
TrackJimCramer 64.82 3/13/2007 Outperform 3W $41.80 +8.11% +11.49% -3.38 10/30/2007 @ $45.19
TrackJimCramer 64.82 9/11/2006 Underperform 3W $36.89 +16.40% +5.05% -11.35 3/14/2007 @ $42.94
TrackJimCramer 64.82 8/17/2006 Outperform 3W $37.66 -2.04% +0.16% -2.20 9/12/2006 @ $36.89
TrackJimCramer 64.82 8/1/2006 Underperform 3W $34.27 +9.89% +2.09% -7.80 8/17/2006 @ $37.66
TrackJimCramer 64.82 3/17/2006 Outperform 3W $43.68 -21.54% -2.78% -18.76 8/1/2006 @ $34.27

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