The Dow Chemical Company (DOW)

Ran up to fast alongside commodities. Mr. Market has already baked in huge earnings numbers in 2010 and I don't think reality will back it up, the ones who ran up fastest, will fall fastest

I was talking to my father, who recently retired from Dow, about some of the recent issues that were going on with Dow. Since he was with them for over 30 years, and was one of the highest ranking people at the plant that he worked at, I trust his judgement. He said that they will come out of this whole thing fine and continue to grow. They already seem to be doing that and doing it well.

The world will always need Dow Chemical products. It has been beaten up and is rising again. Wish I jumped on it at half this price.

The 326% rally off the lows is overdone. Negative tangible book, dividend cut, severely negative free cash flow. Even the typically aggressive analysts think they will only earn $1.17 per share in 2010. Find the next generation Chinese or Brazilian version of Dow Chemical circa 1947 and invest in them instead. (I didn't say it would be easy.)

DOW products are consumed by almost every part of the world businesses, their products are necessary components in almost every industry, as the world economy grows and developing countries emerge they will all need DOW items, there are many new items in the pipeline and many patents pending

Management is aggressively holding costs down to pay for the RoH deal and make up for the lack of the deal with Kuwait. The purchase of RoH added a large portfolio of specialty, patent protected, chemicals. Management is looking for a replacement partner for Kuwait and is likely to find one. Long term I have concerns - if new product lines such as Dow Solar Solutions develop then I'll have a more favorable long term view.

this company has very capable CEO so he runs company for the desirable direction.

I PERSONALLY THINK THAT THIS STOCK WOULD OUTPERFORM OTHERS BECAUSE ITS WELL ORGANIZED AND EASY TO USE.(ONLY IF YOU KNOW WHAT YOU DOING).

Here's the plan guys. We'll go around acquiring 24 bil. in debt just when the global economy is starting to collapse. Then we will begin the 'Human element' advertising campaign, so people will march into their local businesses demanding that: "This air must be freshened, and these floors must be cleaned, and your firm's vehicles' engines must be lubricated only with products made from Dow's original bulk-produced chemicals, or I will cease to shop here and take my business to a more Dow-friendly venue." In addition to this we will continue paying a dividend, ignoring that our net income was that we lost 5% of the value of our company last year.

follow the flow

Dow has conservative management and was able to merge successfully and create additional "scale" opportunities the market did not even notice. These opportunities are being expressed by Dow right now.

Basic materials will be back in demand soon.

Once they sort out their merger mess, the rising tide will lift this ship higher than most.

The chemical industry will continue to rebound but still underperform

Got slaughtered earlier this year, but has almost tripled from its low. This is one of the best companies in the world. Will benefit from recovery.

Dow is not dead, and it is not dying. In spite of the ill timed Rohm and Hass deal, they are still alive and kicking. They just completed a 2.75B note offering, which along with the sale of some assets, they expect to have the "bridge loan", used to acquire R&H, paid off by year end. They are making changes in their product mix, moving toward more high margin specialty chemicals. I bought when they looked like a "dying quail" and have about a 200% profit so far. Even at their current price the look to double again in the longer term when the economy recovers. Even though they are paying a lower dividend then historically, they are still paying one, and that will come back up with recovery. If you are patient, and find a doubling of your investment over the next 2-3 years an acceptable return, it is still a buy. They are currently falling a little, mostly from the non-recurring write downs and the note offerings, so there might be a "dip opportunity" to do even better. JMO and worth exactly what I am charging for it.

strong international position will be advantaged by weakening dollar. Divestiture of commodity products and acquisition of Rhom and Haas will smooth cyclicality problem of the past

fool

Overbought at this time. Fundamentals are lagging way behind the stock price.