Why Shares of Dow Fell 12% in August
Shares of Dow (NYSE: DOW) lost 12% in August, according to data provided by S&P Global Market Intelligence, on growing fears of weakness in its core business. While the name is familiar, this is a relatively new company, one of three formed out of a merger and then split of DowDuPont. The assets in the new Dow's portfolio are impressive, but this is proving to be a difficult point in the cycle for a new company to try to find its footing.
August was a difficult month for Dow. The company was the target of a series of analyst downgrades due to worries about a slowing economy and robust supply in the market for some of its key products. Dow, a combined portfolio of material sciences businesses from the legacy Dow and DuPont empires, makes a range of ethylene, siloxanes, and urethane products that go into coatings, paints, solvents, lubricants, packaging, and specialty polymers.
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Source Fool.com
