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

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.)

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

The chemical industry will continue to rebound but still underperform

fool

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

the ridiculous purchase of Rohm and Haas will catch up to them once they get done cutting corners.

This portfolio tracks the progress of 'good' companies vs. 'evil' companies.

Dow may be slowly improving its actions, but it has yet to atone for sins of the past.

Evil elements: creation of chemical weapons, marketing poisonous chemicals, illegal dumping of toxins into populated areas, environmental destruction, health problems, death

Dow Chemical has been destroying lives and poisoning the planet for decades. The company is best known for the ravages and health disaster for millions of Vietnamese and U.S. Veterans caused by its lethal Vietnam War defoliant, Agent Orange. Dow's "invent first, ask questions later" standard of business led the multinational company to develop and perfect Napalm, a brutal chemical weapon that burned many innocents to death in Vietnam and other wars. In 1988, Dow provided pesticides to Saddam Hussein despite warnings that they could be used to produce chemical weapons.

In 2001, Dow inherited the toxic legacy of the worst peacetime chemical disaster in history when it acquired Union Carbide Corporation (UCC) and its outstanding liabilities in Bhopal, India. As the Students for Bhopal website recounts, "On December 3rd, 1984, thousands of people in Bhopal, India were gassed to death after a catastrophic chemical leak at a UCC pesticide plant. More than 150,000 people were left severely disabled-of whom 22,000 have since died of their injuries-in a disaster now widely acknowledged as the world's worst ever."

Dow refuses to address its liabilities in Bhopal or even admit its existence, continuing in Union Carbide's tradition of profiting from extreme corporate irresponsibility. In India, Dow's subsidiary faces manslaughter charges and is considered a fugitive from justice for a pending criminal case related to the 1984 xhemical explosion. Dow and UCC's lack of accountability in the disaster continue to affect the lives in Bhopal to this day.

World wide, Dow is involved in human rights abuses: environmental destruction, water and ground contamination, health violations, chemical poisoning, and chemical warfare. Dow Chemical's impact is felt globally from their Midland, Michigan headquarters to New Plymouth, New Zealand. In Midland, Dow has been producing chlorinated chemicals and burning and burying its waste including chemicals that make up Agent Orange. In New Plymouth, New Zealand, 500,000 gallons of Agent Orange were produced and thousands of tons of dioxin-laced waste was dumped in agricultural fields. Dow's toxic legacies of human rights abuses traverse to agricultural fields in Central America where Dow exported EPA-banned pesticide DBCP for use on banana and pineapple crops. As a result, thousands of banana workers were exposed to DBCP and became sterile. In retail markets across the world Dow's dangerous chemicals are present as common household solvents, plastics, paints and pharmaceuticals.

I bought DOW around $8 in Feb. and have over a 50% gain, but after reviewing the financials recently and taking the large amount of leverage into account this time, I'm not really confident about their prospects in the next 2-3 years. I originally wanted to hold DOW long-term, but now I'm having second thoughts......

I'm looking for another dividend cut.

A company that seems just too expensive even though it operates in an industry outside of the FIRE sector of economy (FIRE = Financial, Insurance & Real Estate).
The valuation to earnings potential going forward is not worth it, nothing going for it on the dividend end, and there would be other companies in the sector that are much more desirable.

I'd sell this company to put my money elsewhere. In fact, I'd rather use that money and pour it across residential real estate, apartment buildings, other stocks, commodities, or bonds. Even if it survives the next decade, it will lag its peers and it will likely lag S&P 500.

SELL.

bearish on dow, swhc

(bullish on oln, rgr)

These picks are within this CAPs account that is market neutral - all longs are offset by a short. All long & short picks are diversified across industries & world location to limit downside exposure. This CAPS account will maintain at the very least 20 picks and at the very most 80 picks. Picks will be ended in long/short pairs to remain neutral.

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.

merger with ROH will destroy the balance sheet.

Terrible management, even with a good product will destroy a company.

DOW will be in the 8$ range before it recovers.

I don't understand why it is down, so I don't know when it will rebound

tHEY JUST CAN'T BRING THE STREET IN BELIEF TTHEY CAN DO ANYTHING FROM THE BOITHED kUWAIT DEAL AND NO ALTERNATIVE "TALK ABOT RISK MANAGEMENT" TRY ALTERNATIVE Partner they are out there and need you more

soo sad not to be love imagine the R & H merger Oh eccuse me deals off now the lawyers circle in you said i said a couple divorcing before they get t o the alter. Kiss and tell

Dow leadership show no confidence and /or direction get a life.

i'll buy agian when i see real effort at datant!

Dividend is about to be cut.

not good?