Since April or so, CE has steadily declined from 50 to 30's and having hard time going up, even with the overall market going up. This sluggishness in the face of reasonably good earning report (exceeds on EPS but miss tiny bit on revenue) is hard to understand. Is it that too much debt on the books is scaring away big players? I wish CE management will give top priority to reducing debt and making balancesheet more attractive and also rewarding shareholders with healthy increase in dividends, which will demonstrate confidence in the company's future.
Low valuation and low stock price would normally invite corporate raiders such as Carl Ichan, but I suppose leveraged balance sheet is keeping them away.
CE should enjoy S&P500 PE and as such the stock should be at least in 50's if not around 60.
Announced investment in methanol 1bb, ethanol .6bb, plant with partner in middle east .5bb, upgrade of plants in the us to stay within regulations, .2bb. Then you look at the businesses main acid business tanking, and perhaps no longer low cost producer, engineer materials business going backward quickly. So you have to have it from acetate cigaret filters and cheap emulsions. Where does the cash come from to do all these expansions and pay a higher dividend ?
Don't think they can pay more dividend . They need to service debt, build methanol plant, build ethanol plant, businesses like plastics and acid are faltering and falling of the earnings cliff. This place is a mess!