The Dow Chemical Company (NYSE:DOW)

DOW stock will double in the next 6 months..... Kuwait judgement will be finished

A great co. and expanding.

chem beta 2.6 - just off a 2 year low
div 4% <<<<
Total Debt / Equity    1.00
Price Earnings    11.30
Price/Sales    0.51
Price/Book    1.45
Price/Cash Flow    5.40

$20 should be the floor
$30 is easily a conservative fair value
(I wouldn't buy [without options] above $25 gotta have margin of safety after all)

LOOK AT THE PAST PERFORMANCE

Dow has been cut in half this year, a sideswipe casualty of global recession. But it's hardly a broken company. Involved in almost every country in the world, they work in chemicals, equipment, agriculture, and irrigation. They have become especially interested in water purification and in desalination. If water is a wave of the future, Dow is gonna ride it high. Nice dividend, too, and buyback besides. Get some.

too cheap value investor will start buying, playing by buying call options

Battered blue chip with reasonabe P/E and dividend of ~3.5% for some downside protection.

Dow Chemical has taken a beating recently that seems unwarranted, and (hopefully!) sets the stock up for a rebound that will outpace the market.

Shares have been increasing consitently, with very low gross marigins (10-15%), maybe good for the customers, but not the shareholders! Other chemical companies (Monsanto for example), are running closer to 45-50% for the gross margins. Liabilibities are increasing as well. A dividend increase would help them, but I don't think that is happening any time soon.

Beat up lately with the market pullback. Expect a bounce.

Lets slap a conservative 12 times forward P/E on the 12/12 earnings estimate of $3.53 and we get to $42.36 in the next 12 months which is 14.5% higher than current levels at $36.19.

I inherited Dow and held it through the dividend drop and low price days. It is fast getting back to normal and the dividend should be coming back fully soon. It has come through the bad old days like gangbusters! I'll keep it for the dividend (future)
if nothing else!

Buy CCGY too!

It's Dow...

Good strong company in a crucial industry

The sector is entering the "ascent" phase of the industry's business cycle. Inflation in target markets will give producers like Dow the pricing power they covet to expand margins. Add these fundamentals to Dow's $ 7 Billion of cash, and likely recovery of damages from Kuwait (penalties for their immature and childish behavior in 2008-2009) and the outlook for Dow shareholders is rosy, indeed ! Who knows ??? you may even get your dividend back !

because the world is round

Successfully digesting Rohm & Haas, and paying down its debt. The focus on higher end materials should drive revenues and margins higher. It's not out of the woods yet, but has done a good job considering the economic environment it had to operate in.