TOP Daniel S. Loeb, Third Point LLC
Founder and Chief Executive of Third Point LLC

Third Point Takes Significant Dow Position; Calls for Strategic Review

Third Point LLC discusses for the first time an investment in The Dow Chemical Company this morning on Hvst.com. The following is an excerpt from the firm’s Quarterly Investor Letter dated January 21, 2014:
  • Tiny_user
    Robert Grebic
    EMN looks the most interesting in the space, paying down lots of debt and growing EPS quite a bit, has underperformed a lot, not sure what the headwinds are that have dampened the returns the last 12mo. Management is pointing to $8/sh in 2015, and management seems fixed on hitting it by any means necessary. Not sure I like that kind of tone by management if an acquisition doesn't make sense for the long-term core businesses.
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    Andrew Parmentier  |  Height Securities
    Love the idea and the 'self-help' approach. Clearly TP has done their work as it represents just under 10% of their portfolio.
  • Tiny_parmprofilepic
    Andrew Parmentier  |  Height Securities
    Haven't looked at
    APD
    , why was it not attractive?
  • Tiny_khai2
    Khai Nguyen  |  Harvest Exchange
    It'd be interesting to hear thoughts from Tsachy Mishal of TAM Capital since he is short
    DOW
    with his long on Eastman Chemical
    EMN
  • Tiny_user
    Ken The Trader
    Nice call.
  • Tiny_parmprofilepic
    Andrew Parmentier  |  Height Securities
    re:
    DOW
    EMN
    APD
    ... the whole space is somewhat confusing as I've never followed it
  • Tiny_user
    ken miller
    I believe Loeb's investment will bring changes to DOW abd provide a catalyst to the stock.
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    Trey Russell  |  Surgo Asset Management, LLC
    Loeb position will stir up some value
  • Tiny_jeff-dorman_headshot
    Jeff Dorman, CFA  |  Harvest Exchange
    Loved seeing the rebuttal from Tsachy Mishal at TAM Capital Management http://hvst.co/MlZtFK I'm taking Loeb's side on this one, but nice to see Mishal firing back with a well thought out counterargument.
  • Tiny_warren_buffett_3
    Claudio Rojas
    Great write up!
  • Tiny_parmprofilepic
    Andrew Parmentier  |  Height Securities
    In the past 3-months
    EMN
    is up ~10.5% while
    DOW
    is up ~12.5% ... for those keeping score
  • Tiny_user
    Nader Rahelan
    If you can look at cash or the notes, you can tell where the revenues are recognized. As far as splitting the company, what do you intend to coerce them to do with it? Where else is the cash going to be invested? Is this going to be another ebay? Remember Daniel, people's pensions are on the line. BTW, can you please post a forecasted financial statement from your analysis. 40% Upside; 82% Downside over the next months. Good luck, you'll need it.
  • Tiny_gabormasters1
    Alex S. Gabor Infinite Freedom Foundation of King County
    Is there any sense to the intelligent logic of
    DOW
    merging with
    MCP
    ?
    Dow
    = http://hvst.co/1IZhh1R
    MCP
    = http://hvst.co/15mfpSt
  • Tiny_user
    Jeff Muchnik
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