Opinions Mike Capombassis
Dow Inc. (Formerly Dow Chemical) (DOW-N)DOWBUYSep 01, 2016
Mike CapombassisOwned
$53.80
Stock price when the opinion was issued
$33.97
As of Jun 05, 2026. Market Open.
chemicals
It's the ideal tool to help you make quicker, more informed decisions for managing and tracking your investments.
You might be interested:
COMMENT
Up 78% in Q1 and one of the best performers on the S&P. It started to rise early this year because the market expected many interest rate cuts this year. Then, it went up because of petrochemical shortages caused by the Iranian government. LYB is at a risk of a pullback before the war ends. Maybe, maybe not.
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
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
BUY ON WEAKNESS
We'll be in a trading range in the short term at least. The Fed is so behind the inflation curve; inflation so high. Can the Fed engineer a soft landing? Even 7 rate hikes won't cure inflation. We need to fix supply chains. On the positive side, she always felt 2022 growth will be slower than 2021, because fiscal supports have ended. Housing is still strong. Banks are lending, and consumers have historically high amounts of cash to spend. She is adding during this weakness to Dow Chemicals and American Express for example. Look for solid fundamdentals.
chemicals
PARTIAL BUY
One of the world's largest chemical producers. It is very highly cyclical. He thinks we will get through this. It had a nice bounce. Management has said they don't intend to trim that nice dividend. You need a year and a half to two years as an investment horizon. It could go down in the short term. It is a great way to play a cyclical recovery.
chemicals
One of his newest names, one of the highest quality companies in the world. Going through a merger with DD-N (Dupont). Once completed, they will spin off the business into 3 components. It has a rich dividend and growth. A recession would be the biggest risk, but he doesn’t see one on the horizon. He feels comfortable going forward in rate of dividend growth.