You all know how I feel about CEO’s who make guarantees. Dow Chemical’s (DOW) Andrew Liveris has done it. Here is the thing, based on his track record, there is absolutely no reason to doubt it will be accomplished.
First, a brief review of today’s posts on the subject (follow the links).
Says Liveris:
“We will deliver on these synergies, we will deliver on our new earnings profile. We have walked our talk with every single step we have taken. This is not yesterday’s Dow Chemical, it is tomorrow’s Dow Chemical, an advanced technology – high margin company that is now in pace with the Rohm & Haas deal. So frankly, a great opportunity at these numbers (Liveris was referring to the stock price).
Watch the video:
What to think? Liveris is as straight to the point as they come. There are few people out there with a BS radar as good as Buffett’s. The fact that Buffett wanted to do a deal (without having anything specific in front of him) after meeting Liveris can’t speak large enough volumes to the type of people Liveris is.
That being said it is time for value investors to start getting into Dow.
Disclosure (“none” means no position):Long Dow
Visit the ValuePlays Bookstore for Great Investing Books