When Dow Chemical
But let's hope that crew of doubters didn't turn too far; the company is quickly making strides toward cleaning up its balance sheet and trimming non-strategic assets. Beyond that, it just might be that the chemical business, which has been hammered by the economic downturn, is beginning to show some sprigs of spring.
Fortunately for Dow, the capital markets are awake and functioning. Along with Microsoft’s
The company had also borrowed more than $9 billion to make the purchase after a joint venture deal with the Kuwaitis fell apart. Surprisingly, however, a deal has just been signed with the same Kuwait Petroleum that originally walked on Dow. It also involves Royal Dutch Shell
On Monday, the company announced that it might peddle its synthetic rubber business. That unit, which is based in Germany, is working with a bevy of tire companies on reducing rolling resistance, which would lead to a decrease in vehicle fuel consumption. A sale of the unit would follow a jettisoning of its Morton Salt unit. And if you listened to CEO Andrew Liveris on the company's recent conference call, a number of other units may be headed out the door as well.
With all this going on, it was encouraging to have Celanese
Back to Dow, my strong feeling is simply that this is a solid company whose management won't let grass grow under its feet. I'm watching it closely, and I hope my Foolish friends are also.
For related Foolishness:
Fool contributor David Lee Smith doesn't own shares in any of the companies mentioned above or even a chemistry set (any longer). He does welcome your questions or comments. Microsoft is a Motley Fool Inside Value pick. Try any of our Foolish newsletters today, free for 30 days. The Fool has a disclosure policy.
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