Quick analysis, DOW is undervalued and should be around the $6 mark based on its assets and revenue.
For a company with a turnover of over $7 billion a year though, net profit after tax is only around $200M. That is, net profit to revenue is only 2.8%. That's low.
The SP spiked after the announcement on 4/2/15 regarding the new contract, but since then the SP has settled a bit to almost the pre-announcement price. I suppose with companies such as DOW they continually need to win contracts otherwise there'll be no revenues. So overall this contract may not contribute that much to DOW's bottom line.
Probably worth a trade for me at under $4.20. Also an interim dividend coming up as well.
cannot ignore such huge contract, page-36
-
- There are more pages in this discussion • 41 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Add DOW (ASX) to my watchlist
 (20min delay)
|
|||||
|
Last
$5.82 |
Change
0.060(1.04%) |
Mkt cap ! $3.626B | |||
| Open | High | Low | Value | Volume |
| $5.82 | $5.85 | $5.78 | $604.1K | 103.7K |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 12 | 3138 | $5.81 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $5.82 | 1056 | 14 |
View Market Depth
| Last trade - 11.39am 08/11/2024 (20 minute delay) ? |
| DOW (ASX) Chart |
