DuPont Looks Better Than Dow - Barron's - SA Editor Eli

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DuPont Looks Better Than Dow - Barron's
Jul 13, 2008 09:00 PM UTC

SA Editor Eli

Return	Risk
-12.69%	MID

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Symbol	Sentiment	Start	Return	Closed
ROH	n/a
DOW	n/a
DD		07/13/08	-20.24%	--

Via Long Investment Ideas from Seeking Alpha:

Shares of Dow Chemical (DOW) fell another 7% last week - a reflection the markets felt CEO Andrew Liveris's $18.8B takeover of Rohm and Haas (ROH) was too rich. Barron's Andrew Bary thinks they may have a point:

The $78-a-share purchase price translates into about 21 times Rohm's estimated 2008 profits of $3.70 a share, and nearly 12 times estimated 2008 pre-tax cash flow, or earnings before interest, taxes, depreciation and amortization. By comparison, Dow Chemical trades for under 10 times projected '08 profits of $3.30 a share, and less than six times estimated '08 pre-tax cash flow of $6.7 billion.

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