So, has anything changed from the reasons I encouraged you to buy DOW in Saturday's post? In a word, NO.
CEO Andrew Liveris said on CNBC that DOW was:
-The low cost producer in its lines of business
- After 17 consecutive quarters of increases, feedstock and energy prices dropped and look to remain low, this both increases demand for its products and lower its costs. Result? Continued margin improvement
- Reduced it's "cyclical" business to 47%, he declared "we are no longer a cyclical company"
- Had record revenue and earnings
- Balance sheet is "very, very strong" - Cash is increasing and debt decreasing. This can be used for more stock buybacks, increasing the dividend or purchases
- Looking for "acquisitions at the right price and synergies." Translation: If it will not add to earnings this year they will not do it.
In short, there is nothing happening at DOW that should dampen our enthusiasm for the company (if anything, we should be getting more excited). Liveris has done a masterful job positioning DOW for the future. Each quarter DOW is creating more value for shareholders. It will not be long before Wall Street recognizes this and jumps on the bandwagon. You might want to be there first...