Chemically Speaking… (DOW)

We played DOW twice in the last year and pulled in chemically charged wins of 2277% and 933%.

And today we do it again.

Dow, as you know, makes chemicals.  And chemicals are regularly used to kill people.

The chemical industry, in fact, is quite adept at doing just that, and then paying large ransoms for people to hush up after they (the chemco’s) are revealed to be liable for those deaths.

In the meantime, of course, there’s still a great deal of money to be made, even after the penalty payouts are accounted for.

FUNDAMENTALS

But enough moralizing—you’re here to make money.

So let’s look at the fundamentals.

• To begin, P/E is a mere 13.14,
• Dividend Yield is a smashing 5.33%, and…
• Price to Book is a competitive 1.84.
• That said, EPS FELL this past year by 25.10%, and
• Analysts expect EPS shrinkage of 2.06% every year for the next half decade!
• Latest Q/Q sales DUMPED by 22.40%, and…
• Latest Q/Q EPS FELL by 106.40%.
• So, it’s bad.
• More than that, the company itself has guided Wall Street LOWER for the next quarter, citing “slower macroeconomic activity and lower pricing levels” along with “uneven” Chinese demand.

‘Uneven’ means a brick to the head.

And so we arrive at the chart.

Now, note carefully that the company’s shares have already been falling for five months.

So why should anyone believe a further decline is in the offing?

Ah… but this is why you come back every week, no…?

Take a peek—

So let it be written…

So let it be done!

!שכן יהי רצון

Many happy returns!

Matt McAbby

Follow @HughLOHaynew