edwar77

Four Reasons to Own Dow Chemical

There are so many things wrong with Jamaican in Africa's analysis I hardly know where to start. To begin with the P/E ratio is an indication of relative value of the stock price. It does not as you suggest tell you that DOW earns more than it's competitors but only that the market has put a low multiple on DOW's earnings. So it tells you nothing of the efficiencies of the operations.

I do agree with you that without the anchor of ROH DOW would otherwise be able to endure the recession and prepare to take advantage of the next up cycle. Alas ROH is real and in one way or another it will cost DOW dearly. That's what an incompetent cowboy CEO and weak BOD gets you these days in corporate America. Once I read the merger agreement carefully and researched the problems with the Kuwait fiasco I realized that the dividend would be soon toast. So I took my loss at $16.10 and ran "like a thief". The odds for a truly positive outcome for DOW in 2009 are very low in my humble estimation.