Why The Dow Chemical Company (DOW) Could Continue its Rally This Week

While this news will hold good space in Dow’s upcoming earnings call, it won’t have a bearing on its numbers, nor will it be the only highlight of the call. Here are points you should note down before plugging in the audio jack to your ears on Jan. 30:

• If Louisiana brought in good news, Dow also found itself mired in controversy as it stepped into 2013. Dow’s latest herbicide-resistant corn, Enlist which was aimed at taking Monsanto’s popular Roundup Ready corn head-on has met with strong criticism even before it is launched. So strong, that Dow could defer its launch by a full year. With the unpleasant event coming up just before spring planting, Dow could have much at stake. Analysts will hope for some clarification on the matter next week.

• Stakes could be much higher for Dow as it goes on trial regarding a long-pending lawsuit that alleged its role in fixing chemical prices. The company is ready to defend itself, and how things shape up will hopefully be known best in the upcoming call.
• Wait, the list doesn’t end here, although I wouldn’t dare call this one a controversy. After its CEO Andrew Liveris openly voted against the U.S. going for rampant gas exports in the future, Dow has made a brave decision to leave a powerful manufacturer’s association that thought otherwise. I’m sure Liveris will have a lot to say on this next week, and this is one noise my ears will certainly perk up at!

So get ready for lots of opinions, action plans, and of course projections from Dow.  Its guidance for 2013 should largely be an extension of the three primary objectives it outlined earlier – higher earnings and cash generation through cost efficiencies.

Excitement is building up

I am really excited to know about Dow’s plan for 2013, because while at one end it is dialing back up to $500 million in capital spending this year, restarting the ethane cracker clearly proves that Dow isn’t putting growth plans completely on the back burner. The aggressive restructuring moves it outlined in late 2012 should result in a whopping $1 billion of cost savings this year. How is Dow planning to go about it is what will keep me hooked on.

As the dividend aristocrat unveils its earnings report, stay tuned to know what you should make of those numbers. Simply click here to add Dow Chemical to your stock watchlist to stay updated.

The article Why Dow Could Continue its Rally This Week originally appeared on Fool.com.

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