Dow Inc. (Formerly Dow Chemical) (DOW-N) (DOW)

It is in the materials space and they do better later into the cycle. It is getting a bit frothy. 16 times forward PE. Take profits.

Likes companies like this because of the structural trend towards lower natural gas prices in North America. Any time you can find a chemical company that has a lot of North American-based production, that puts them at a very good advantage relative to European and Asian production. Nice dividend yield.

This company and DuPont (DD-N) are trying to shed non-core assets, which are mostly the plastic businesses. They generate a ton of cash flow. Earnings have been good and the stocks have been rising in this rally because this latest rally has been on the back of industrials and the big commodity companies. This is a good company and will continue to do what it is supposed to do as long as the economy continues going forward.

Done a good job of repositioning business over the last few years and focusing on more specialty products. Getting better margins on their products. Costs are relatively low because of oil and gas prices. Good play on a slowly improving US economy and improving housing and auto markets. Continue to own.

Dow Chemical (DOW-N) or Dupont (DD-N) for a 2-3 year hold? He prefers Dupont.

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.

(Top Pick Aug 22/12, Up 27.52%) Sold not too long after recommending it. Was concerned about global growth. Moved into Qualcom.

Recently broke above some important resistance levels. Chemicals have a tendency to peak right around now. You will have an opportunity to purchase late this year.

Chemical companies are benefiting from boom in oil and gas production. Benefit as industrial economy gets better. A spectrum of industrial exposure. 3.5% yield.

History shows that $29.29 is the ceiling on this stock. Would look elsewhere.

Is the same as it was last year at this time. There is seasonality. He would look to take some off the table. If you are a longer term believer then you might want to hold.

Chemical stocks like this usually do very, very well from around November until this time of year. This year, it did okay but recently has not been doing as well. Chart shows it has developed a slight downward trend. It’s below its 20 day moving average. If you own, it might be an opportunity to take money off the table.

In the global chemicals industry, there is too much capacity right now and the middle east is bringing on even more capacity at a frenetic rate. Dow has cheaper feedstock through cheap gas and oil. Very attractive dividend at almost 4%.

A pure play on global expansion. Sold his holdings a couple of months ago because he wanted to lessen his exposure to pure industrials and pure global plays. No real expansion probabilities with this one.

Nothing wrong with their business mix and how they function. You have to look at this in an environment where we are talking about relatively low global growth. There is no rush to get into a firm like this. This is one where you want to pick and choose your entry point.