Chemical Businesses
March 27th, 2010 by YoungChemical Businesses!
I haven’t talked about the chemical industry for some time now. Maybe because I’m invested in it and it’s not doing to well. The chemical makers like Ashland, Dow Chemical and Rohm & Haas haven’t been doing to hot over the last few years. Mostly because of the chemical products they produced have dropped off. When people stop buying things around the world this industry feels it the most. That’s because they make the raw materials that go into just about everything. All of these companies I just stated in this post have lost about 80 percent in value because of the down turn. Two of these companies had agree to come together before the down turn, Dow Chemical and Rohm & Haas. Dow Chemical was going to purchase Rohm & Haas for $78 a share. But that deal has since falling apart, and Dow Chemical was paying a $3 million a day fee until they close the deal. And this deal also sparked Rohm & Haas to file a lawsuit against Dow Chemical; it was a big mess. However, over the last 2 years these companies have had a come back, a huge come back. Ashland is up from a low of $5.35 a year ago to almost $54 a share today. I have shares in Ashland, and have done pretty good with them, I think they still have room to grow, anyway that’s what I’m hoping.