Opinions
Don Vialoux
Dow Inc. (Formerly Dow Chemical) (DOW-N)
DOW-N
BUY ON WEAKNESS
Dec 04, 2013
$38.890
Stock price when the opinion was issued
chemicals
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DON'T BUY
Chemical companies are industrials, and industrials do poorly during recessions. Shipments are down 14%, so earnings will struggle. 7x earnings. Dividend hasn't grown in last 5 years, so higher inflation wipes out your income. Yield is unattractive at 5.6%, which is only high because stock price has come down. Instead, he owns DHR and TMO.
chemicals
WEAK BUY
Hope that it rises from the ashes as AT&T did?
Not sure it's going to rally the way AT&T did. Very different sectors. In his modelling, he's been in accumulation mode. Likes it at these levels on a risk/return basis, screens well for value. High yield is probably a risk factor at this point. Not a lot of upside potential to analysts' price target.
(Analysts’ price target is $32.00)
chemicals
Just announced they were selling off $3-$4 billion of assets. Companies like this have very strong seasonality at this time of year, usually from around October right through until at least the end of the year and into the springtime as well. Chart shows the stock is trying to form a base. Longer-term technicals are pretty good. Any kind of weakness you see in the next couple of weeks is an opportunity to Buy.