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Value Investor
Wealth Building Opportunites for the Active Value Investor

February 6, 2023

Moving Dow (DOW) to Sell

Today we are moving shares of Dow (DOW) from Buy to Sell. As the shares have reached our 60 price target, and with no compelling reason to raise that target, we are moving the shares from Buy to Sell. This change will also be made in the Cabot Turnaround Letter.

Dow remains a fundamentally strong company with a valuable market position, healthy profits and free cash flow, a solid balance sheet and is led by capable management.

After a long slog since this name was originally recommended in April 2019, before the current analyst arrived, the Dow investment is finally showing a profit relative to our cost. We estimate that the total return since inception is approximately 19%. This compares to an estimated 45% total return for the S&P 500 Index.