Loeb To Dow: You’re No LyondellBasell

In an investor letter, Daniel Loeb, who heads the hedge fund Third Point, a major Dow Chemical shareholder, gave his constructive critique of Dow’s strategy. Dow, he says, should be earning $2.5 billion more than it currently does. The letter was by no means scathing. He praised Dow’s share buyback program. He acknowledged that Dow has pledged more transparency, but he wants to see more. Specifically, he wants Dow to...

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Trinseo (Styron) Drops Its IPO

Trinseo has withdrawn its prospectus for a $400 million initial public offering of stock. Trinseo is the rarely used name for Styron, the former Dow styrenic polymer and polycarbonate unit. Dow sold the unit to the private equity firm Bain Capital for $1.6 billion in 2010. Bain changed the name to Trinseo for some reason and filed for an IPO two years ago. In its letter to the Securities and Exchange Commission, dated June 15 pulling...

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Why Doesn’t Radio Shack Sell 3D Printers?
Jun11

Why Doesn’t Radio Shack Sell 3D Printers?

About a year ago, I decided the best deployment of unused capital in my Scottrade account was to purchase shares of Radio Shack. My investment thesis was this: 1) I bought a TRS-80 there 30 years ago. 2) I made guitar effects pedals using Radio Shack parts there about 20 years ago. That’s it. The whole idea was predicated on nostalgia. I’m in the red thus far. I have learned a lot about Radio Shack—the business side, not where they...

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Tough Times For Propylene Buyers

There is little doubt that the advent of shale is opening the spigots for massive amounts of new ethylene production in North America. However, a consequence of all the additional production of ethylene is much less production of propylene. Chuck Carr, a propylene analyst at IHS Chemical, gave a great overview of the situation at IHS’s petrochemical conference down in Houston late last month. As ethylene makers seek to take advantage...

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As You Sow Flies The Flag Of Victory Over McDonald’s

McDonald’s is testing double-walled paper coffee cups at 2,000 of its restaurants, primarily on the West Coast, to replace the expandable polystyrene cups it currently uses. McDonald’s says it testing market acceptance, performance, and operational impact of the new cups. The advocacy group As You Sow, which organizes shareholder resolutions at companies to improve environmental performance, is claiming victory, noting that this comes...

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Monaca, Pa!

Shell Chemical has selected the Pittsburgh area town of Monaca, Pa., as the site of its new ethylene cracker complex. Actually it will be in Potter and Center Townships, which are near Monaca, Pa. (Pop. 6,286, according to Wikipedia). But that narrows it down a lot more than what Shell was previously saying: “I don’t know, Appalachia somewhere or something.” Monaca is a bit of a chemical town. It is host to a Nova complex that makes...

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