A lot of the chemicals that ASH and HRC manufacture are derived from petroleum.....Crude is down to about a third of what it was last quarter....this should help ASH's profitability over the coming quarters in their chemical divisions.
Let us not forget that Valvoline's sales numbers went up nicely last quarter but the unrealistically high cost of crude last summer ate into Valvoline profits....now that crude is less than $60 barrel, Valvoline's profits will soar this next quarterly report.
Add in fact that ASH has book value over $50 per share & paying over 5% dividend......ASH is a screaming BUY!!!
The downgrades were expected due to the merger.The bal. sheet is good. What's the problem? Can't buy at the bottom all the time. They are looking 3-5 years out. Must grow and diversify to stay ahead in this business.
No one knows what the bottom of any stock will be during these times but I sure like ASH's shares alot better today than I did when they were $70 per share about 2 years ago....from my due dilligence, ASH shares are such a great deal right now....I don't claim to know if ASH goes any lower in the short term but I sure think ASH shares are VERY undervalued for the moderate to long term investor!!!
Think of it this way.....ASH's big raw material cost is now about 1/3 the cost it was earlier this year.....do you really think that ASH's sales will only be 1/3 of what they were???? I surely doubt it!!! ASH sales may drop 10% or so in the next quarter, but not much more than that in my opinion.