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The Dow Chemical Company Message Board

  • jondow69@ymail.com jondow69 Feb 21, 2013 10:39 PM Flag

    DOW WILL REPURCHASE STOCK? IS THAT GOOD/BAD FOR ITS STOCK PRICE?

    any ideas?

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    • Good luck getting anyone else to give an opinion. Here's mine for the little it's worth.
      It's good if Dow retires the shares. I've seen this info included in repurchase plans before so I'm a little concerned that it isn't included in this one. The repurchase can be done on the open market or privately negotiated agreements. The privately negotiated agreements isn't the best part. It could mean buying back stock from creditors or even executives at whatever price they want for it. If to creditors, it isn't exactly money down the drain because it would go to reducing the debt. If to executives, it would be a huge waste of our money for the enrichment of a few.

      The shares would have to be retired for it to raise shareholder value, ie., reduce the float. Dow has not given enough information. I just have to hope its good.

      • 2 Replies to walkingoncats
      • Considering the present CEO's stewardship, he's done worse with just about everything else that has his signature on it.

      • Historically, stock buybacks are great for PR, but don't necessarily improve the performance of the stock in the long run. I find it no coincidence that the stock buyback was announced within 24 hours of the bad news from the lawsuit. I pretty much agree with everything walkingoncats stated. Dow is down and I predict will have some more choppy times in the months ahead. However, the company has solid financials and positive growth. In theory, with interest rates so low, retiring equity makes more sense than retiring debt, especially when the stock price is depressed. It should be a positive for long-term holders.

        Sentiment: Buy

 
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