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Strategies & Market Trends : Value Investing

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To: elmatador who wrote (43046)	7/19/2011 1:06:02 PM
From: E_K_S	of 78683

Hi elmatador - This looked like a different twist on using Brazil sugar cane. I didn't realize that Dow already grows sugar cane on roughly 42,000 acres in Brazil. The company has a forward PE of 9.6 and is in a sector that W. Buffet likes which could bode well for the company long term. Dow Chemical, Mitsui in Brazil sugar cane venture reuters.com Dow Chemical Co and Mitsui & Co Ltd have formed a joint venture to turn sugar cane into ethanol and plastic, an area widely considered the future of the chemical industry. It looks like DOW was able to acquire these assets on the cheap: From the article"...Dow first announced its sugar cane operation in 2007 as part of a joint venture with the now-defunct Crystalsev. Dow bought Crystalsev's stake after its collapse and has since been searching for a new partner...". ------------------------------------------------------------------------------------------------------------------------ I will add this one to my AG watch list but this industry is quite cyclical and could correct substantially on any slow down in the economy. An entry point below $20 would reflect a 50% retracement from it's three year high to it's three year low. At the current price DOW is not a screaming value buy but on any substantial correction it might be worth a small buy as a tracking position. EKS

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