Dow Chemical Company (DOW)

[Danl]

Psst... No Dow now, for almost 2 months..

Go to DWDP

[Danl]

DWDP has a bio-tech deal for gene editing..

http://www.delawareonline.com/story/money/business/2017/10/27/ivy-league-deal-dupont-gives-scientists-room-tinker-groundbreaking-crispr-technology-no-matter-outco/805930001/

[Danl]

Interesting..Glover Parks Group to take Specialty Materials sector..

http://www.odwyerpr.com/story/public/9631/2017-10-26/dowdupont-parks-specialty-group-at-glover.html

[Danl]

Today’s report, is just the beginning...

Just, the beginning!

[Danl]

Barron’s article today: Buy before the breakup..

http://www.barrons.com/articles/dowdupont-buy-it-ahead-of-the-breakup-1508554090

[Danl]

Per Third Point today:

DowDuPont carries an unlevered balance sheet and retains significant M&A optionality. Yet, DowDuPont trades at just 8.6x consensus EBITDA in 2019, a substantial discount to its sum-of-the-parts when we look at the multiples of the likely comparables for the three (or more) Spin-Cos. As a result, we continue to see significant upside to our investment in DowDuPont.

[Danl]

DWDP swung a Korean sale...

http://m.koreaherald.com/view.php?ud=20171011000611#cb

[Danl]

Interesting analysis...

"Extreme optimism for DWDP, as market analysts projected an outstanding earnings growth rate of 248.57% for the stock, supported by an equally strong sales growth of 59.88%. An affirming signal is when net income increase is supported by top-line growth. Since net income isn’t artificially inflated by one-off initiatives such as cost-cutting, we know this profit growth is more likely to be sustainable. This prospective profitability should trickle down to shareholders, with analysts expecting the company to generate a high double-digit return on equity of 22.86%. DWDP ticks the boxes for high-growth generation on all levels of line items, which makes it an appealing stock to dig into deeper. Thinking of investing in DWDP? Have a browse through its key fundamentals here."

[Danl]

There is no Dow anymore... DWDP board is created

[Danl]

What the future may hold...

"DowDuPont still intends to split into agriculture, specialty product, and material science companies. The specialty product company, with 2016 pro forma revenue of around $20 billion, will comprise four divisions of similar revenue: electronic and imaging, transportation and advanced polymers, safety and construction, and nutrition and biosciences. Given that these four segments are distinct businesses that will be operated separately, we would not be surprised if the specialty product company split into four separate companies at some point. We note that each of the four businesses will generate similar revenue as previous divestitures such as Axalta and Chemurs."

@$125 value...AND THATS JUST 1 OF THE 3 DIVISIONS...

[Eagle1]

Dow DuPont DWDP made over 69 today!!!

[Danl]

Glenview's perspective:

As we believe DowDuPont remains significantly undervalued relative to the sum of its parts, we recommend the board adopt a meaningful share repurchase program promptly to reduce the overall cost of capital and to drive long-term shareholder value.”

[Danl]

Interesting last comment by BAC analyst:

In terms of financials, DowDuPont's expectations to achieve $20 billion in EBITDA in 2019 could actually be a conservative figure as it doesn't assume the $1 billion in targeted revenue synergies, the analyst also noted. As such, there exists a path for the stock to move as high as $100 per share over time.

[Danl]

Bernstein jumps in..says $79.

https://www.truebluetribune.com/2017/09/01/dowdupont-dwdp-now-covered-by-sanford-c-bernstein.html

[herb will]

The Dow webpage on the Yahoo Finance Site is:

https://finance.yahoo.com/quote/DOW/analysts?p=DOW

Directly under closing price is line listing Summary Conversations Profile
etc. The old board is now referred to as Conversations. Click Conversations.

I was wrong thare are a number of reponses.

[Danl]

Interesting situation developing...Dow & DD are in lockstep pricing..Roughly an $18 difference... At some point, Dow should go up $9, and DD should go down $9, as they merge on the Friday opening bell...

[Danl]

I'm not seeing a "Summary" anywhere... Per TheLion, a Yahoo board must be operating, as their posts are showing up, with ours....?

[herb will]

The Yahoo board is found by clicking "Conversations" in the Summary.

But it is not active.

https://finance.yahoo.com/quote/DOW/community?p=DOW

[Danl]

FINALLY!! Someone mentions the merger!

https://www.etftrends.com/dupontdow-merger-the-risks-the-strategies/

Analysts must be sleeping somewhere...

[Danl]

Valuation will now get interesting....

$150B gold standard, that could go to 3-6 gold standards..+...

[Danl]

Can someone please link me to that Yahoo Board?

I thought that was discontinued...

[Danl]

I could see $90-$95+ next year...

http://m.nasdaq.com/article/zacks-industry-outlook-highlights-dow-chemical-dupont-eastman-chemical-celanese-and-air-products-cm820937

Then spinoffs, Breen doing his thing..

[Eagle1]

Nice article thank! Dow in uptrend:)

[Danl]

Forbes article.. Dow Chemical could outrun the bulls..

https://www.forbes.com/sites/investor/2017/07/18/four-buffett-inspired-picks-that-could-outrun-the-bulls/#30db3e8f31c6

[Eagle1]

Will be interesting to see the results of the possible new outcome here!

Holding and adding big here!

[Eagle1]

Dow: Impressive Dani! Thanks!!


Dow


Re: Eagle1 Post# 280
Here you go Eagle.. About Breens plan..

My note: If you had a $35 share of Tyco, when Bremen took over; that share is now worth $350..


DowDuPont break-up: Edward Breen to use Tyco experience
BOB TITA, JOANN S. LUBLIN
The Wall Street Journal12:00AM January 7, 2016
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To gauge the future of the planned chemical titan DowDuPont, it helps to look back at the dismantling of another industrial giant: Tyco International.

DuPont chief executive Edward Breen spent a decade as Tyco chief executive, pulling apart what was once among the largest US conglomerates. He transformed Tyco from a company with $US41 billion a year in revenue to one that now has about $US10bn ($14bn) in annual sales, mostly from security and fire-suppression systems for commercial buildings.

Mr Breen and Dow Chemical chief executive Andrew Liveris plan to similarly disassemble their two companies after first merging them into one with about $US90bn a year in combined sales. Mr Breen will be the chief executive of the resulting enterprise, DowDuPont, which the companies hope regulators will approve by the year’s end.

Executives plan to eliminate about $US3bn in annual costs, then split DowDuPont by 2018 into separate companies focused on agriculture, industrial materials and specialty products.

Mr Liveris, who will be chairman of the combined company, brings some experience in separating businesses as well. Dow last year split off much of its chlorine business in a $US5bn deal with smaller rival Olin.

“You always have productivity as your focus,” Mr Liveris said, adding that the company had figured out how to stay lean while it grows.

Mr Breen said his Tyco experience offered a guide to how to select and prepare executives for the changes.

Several people who know him agree that his Tyco work show an ability to assess how executives and business units could slide effectively into new companies.
Here you go Eagle..


“He likes stepping into situations that have a lot of moving parts,” said Deane Dray, a longtime analyst covering industrial conglomerates at RBC Capital Markets. “It’s easier for CEOs to be acquisitive and empire builders than to be diplomatic and ruthless about making decisions to create viable spin-outs. He’s not shy about controversy.”

During Mr Breen’s tenure as Tyco’s chief, which ended in 2012, the company sold about 100 businesses, hived off three public spin-offs, and made Tyco shareholders majority owners of a fourth through a merger.

Some of the resulting stocks became hits, particularly medical-equipment company Covidien. Others have fared less well, particularly home-security service ADT.

Unlike DuPont or Dow, Tyco was in perilous financial shape when Mr Breen arrived in 2002 after serving as president of Motorola.

Mr Breen created trust among the future CEOs, and avoided surprises.

Mr Breen said he tried to be clear with employees about their aspirations and prospects. “People were nervous,” Mr Breen said, but “that process worked very well for us.”

Jack Krol, a retired DuPont chief who was Tyco’s lead independent director during much of the Breen era, expects Mr Breen to follow the same break-up playbook at DowDuPont. “He will send the companies out with strong balance sheets and the right kind of people to run them,’’ Mr Krol said. In that way, “they don’t run into trouble”.

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[Danl]

Here you go Eagle.. About Breens plan..

My note: If you had a $35 share of Tyco, when Bremen took over; that share is now worth $350..


DowDuPont break-up: Edward Breen to use Tyco experience
BOB TITA, JOANN S. LUBLIN
The Wall Street Journal12:00AM January 7, 2016
Share on Facebook
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Share on email
Share more...
No Comments
To gauge the future of the planned chemical titan DowDuPont, it helps to look back at the dismantling of another industrial giant: Tyco International.

DuPont chief executive Edward Breen spent a decade as Tyco chief executive, pulling apart what was once among the largest US conglomerates. He transformed Tyco from a company with $US41 billion a year in revenue to one that now has about $US10bn ($14bn) in annual sales, mostly from security and fire-suppression systems for commercial buildings.

Mr Breen and Dow Chemical chief executive Andrew Liveris plan to similarly disassemble their two companies after first merging them into one with about $US90bn a year in combined sales. Mr Breen will be the chief executive of the resulting enterprise, DowDuPont, which the companies hope regulators will approve by the year’s end.

Executives plan to eliminate about $US3bn in annual costs, then split DowDuPont by 2018 into separate companies focused on agriculture, industrial materials and specialty products.

Mr Liveris, who will be chairman of the combined company, brings some experience in separating businesses as well. Dow last year split off much of its chlorine business in a $US5bn deal with smaller rival Olin.

“You always have productivity as your focus,” Mr Liveris said, adding that the company had figured out how to stay lean while it grows.

Mr Breen said his Tyco experience offered a guide to how to select and prepare executives for the changes.

Several people who know him agree that his Tyco work show an ability to assess how executives and business units could slide effectively into new companies.
Here you go Eagle..


“He likes stepping into situations that have a lot of moving parts,” said Deane Dray, a longtime analyst covering industrial conglomerates at RBC Capital Markets. “It’s easier for CEOs to be acquisitive and empire builders than to be diplomatic and ruthless about making decisions to create viable spin-outs. He’s not shy about controversy.”

During Mr Breen’s tenure as Tyco’s chief, which ended in 2012, the company sold about 100 businesses, hived off three public spin-offs, and made Tyco shareholders majority owners of a fourth through a merger.

Some of the resulting stocks became hits, particularly medical-equipment company Covidien. Others have fared less well, particularly home-security service ADT.

Unlike DuPont or Dow, Tyco was in perilous financial shape when Mr Breen arrived in 2002 after serving as president of Motorola.

Mr Breen created trust among the future CEOs, and avoided surprises.

Mr Breen said he tried to be clear with employees about their aspirations and prospects. “People were nervous,” Mr Breen said, but “that process worked very well for us.”

Jack Krol, a retired DuPont chief who was Tyco’s lead independent director during much of the Breen era, expects Mr Breen to follow the same break-up playbook at DowDuPont. “He will send the companies out with strong balance sheets and the right kind of people to run them,’’ Mr Krol said. In that way, “they don’t run into trouble”.

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[Eagle1]

Dani that link doesn't work. Can you copy paste it?

Thank you!

[Eagle1]

Awesome DOW at new highs! Going higher!


About time for some new analyst figures...

$75-$80..



Report TOS

[Danl]

About time for some new analyst figures...

$75-$80..

[Danl]

Continued & expanded success...

http://www.eppm.com/materials/dow-expands-pu-service-centre-eastward/

[Danl]

Everyone is waiting for divergence...

[Danl]

Add another $500M...

http://www.post-gazette.com/business/pittsburgh-company-news/2017/07/06/Nova-Chemicals-ordered-to-pay-Dow-Chemical-645-million-dollars-patent-case/stories/201707060176

[Danl]

Dow is building again! $$$$!

http://tradearabia.com/touch/article/CONS/327190

[Danl]

Of interest..Sadara, Saudies, and Chemicals growing faster than oil..

https://www.bloomberg.com/news/articles/2017-07-02/from-oil-gushers-to-golf-balls-saudi-aramco-bets-on-chemicals?ref=yfp

[Danl]

Named Manufacturer of the Year....

http://www.ourmidland.com/news/article/Dow-named-2017-manufacturer-of-the-year-11260569.php

[Danl]

Wonder what shareholder values could be?

http://www.philly.com/philly/blogs/inq-phillydeals/dow-dupont-reconsider-3-way-split-20170629.html?mobi=true

[Danl]

Coming soon...

http://www.theaustralian.com.au/business/wall-street-journal/dowdupont-breakup-edward-breen-to-use-tyco-experience/news-story/653e86df02199f7f5c8f0ba4d92b7dd8

Over 10X initial value..

[Eagle1]

Yes thanks!

[Danl]

Interesting read..

http://news.cmlviz.com/2017/06/11/breaking-dow-chemical-company-the--nyse-dow--stock-through-resistance--technicals-hit-extreme-strength.html

[Eagle1]

DOW: Third point saying spin 6 off to unleash an additional $20billion in value!

[Danl]

Australia joins Europe, Brazil, China in approving merger...

Waiting on U.S. & Canada..

$70-$72, just around the corner.

[eFinanceMarkets]

Dow Chemical completes construction of Texas polyethylene plant

Dow Chemical (DOW +0.2%) says it has wrapped up construction of a polyethylene plant in Freeport, Tex., as part of its $6B Gulf coast investment program on projects to utilize low-cost and advantaged U.S. shale gas feedstock.

The unit will produce Dow’s proprietary ELITE enhanced polyethylene resins for use in flexible packaging applications for food, personal hygiene products, and other industrial packaging.

Dow says the 400K metric tons/year plant has entered its commissioning phase ahead of a scheduled ramp-up during Q3 and full operations in Q4.

[Eagle1]

Interesting Dow Info from Thirdpoint

http://ow.ly/UvVu30c63Cw

[Eagle1]

Yes agree Dani.

Have a great weekend!

[Danl]

Most of Dow's spinoffs have done well...

I'm curious to see what the final proposals look like..and what winds up, with who, dividend potentials, etc. There's a lot of money being made, and yet to be made.

[Eagle1]

DOW Nice and I hope we can select just one spin if we want to.

I'd like to have %100 of shares in the New Dow material sciences ..

[Danl]

That's not how I understood it...

If you have 6,000 shares now, let's just say, you would get 2,000 shares, or thereabouts, of each of the 3 spinoffs... Which, you could change, prior to spinoff.. That's how I understood it..

Of course, the board will be revisiting the situation shortly.

[Eagle1]

Hi and thanks Dani

So if I have 5000 shares of Dow now I would get 5000 shares of dowdupont.

Then with each spinoff would get 5000 shares divided by 3 ?

[Danl]

Finally! A live body! LOL!

I called IR 2 weeks ago.. They told me that the company would a lot your shares proportionately among the 3 spin offs, but that the final decision, would be up to the shareholder...

I'm thinking the valuations would be $35-$25-&25.. but maybe Loeb is thinking at least another $20 too... $85-$105 is fine with me.