Summary of Key Points from the Conference Call Industry Overview - **Industry**: Oil, Gas, and Chemicals - **Key Trends**: - OPEC+ is expected to fully unwind production cuts, leading to increased oil supply surplus expectations. - Brent crude oil prices fell by 3% month-over-month (MoM) to US$67.3 per barrel in August, indicating weaker prices as peak demand season ends. [2][28] - The International Energy Agency (IEA) projects a surplus of 1.8 million barrels per day (Mb/d) in 2025, increasing to 3.0 Mb/d in 2026. The Energy Information Administration (EIA) forecasts around 1.5 Mb/d for both years. [2][28] Chemical Sector Insights - **Price Movements**: - TDI (Toluene Diisocyanate) average selling price (ASP) increased by 13% MoM, but showed a downward trend due to soft demand and higher supply. [3] - mMDI (Modified MDI) ASP rose by 7% MoM, supported by maintenance periods for some plants. [3] - Refrigerant R32 ASP also increased by 7% MoM, driven by strong producer bargaining power. [3] - **Demand Dynamics**: - Price increases were noted among TiO2 producers and polyester filament businesses, indicating potential for further price hikes in the near term. [4] - Products with tight supply include acetic acid, hydrogen peroxide, refrigerants, and others, suggesting potential price support. [4] Stock Recommendations - **Preferred Sectors**: - Chemical subsectors are favored as beneficiaries of 'anti-involution', particularly: - Fertilizers (Hualu) - Refining/Olefins (Hengli, Baofeng, Satellite) - Products with price hike potential (Wanhua for pMDI, Tongkun for polyester filament, Fufeng/Meihua for MSG, and refrigerants). [5] Risk Factors - **Oil & Gas Sector Risks**: - Fluctuations in crude oil prices and disappointing productivity enhancements could impact the sector. [28] - **Chemical Sector Risks**: - Price volatility due to international oil price changes and macroeconomic uncertainties could affect demand. [29] - **New Materials Sector Risks**: - Technological changes and reliance on policy support pose risks to revenue growth and stability. [30] Price Trends and Spreads - **Chemical Product Prices**: - Significant price changes were observed in various chemical products, with some experiencing declines of over 30% year-over-year (YoY). [27] - For example, butyl acrylate saw a 20.9% decrease MoM, while methanol-coal prices increased by 63.5% YoY. [27] Conclusion - The oil and chemical sectors are facing a complex landscape characterized by supply surpluses, price volatility, and shifting demand dynamics. Investors are advised to monitor these trends closely for potential investment opportunities and risks.

Core Viewpoint - Dow Inc. is facing a class action lawsuit due to allegations of misleading statements regarding its financial health and ability to manage macroeconomic challenges, leading to significant investor losses during the specified class period [1][3]. Summary by Sections Class Action Details - The class action represents investors who purchased Dow securities between January 30, 2025, and July 23, 2025, with a deadline for filing a lead plaintiff motion set for October 28, 2025 [1]. Allegations Against Dow - The lawsuit claims that Dow overstated its ability to handle macroeconomic and tariff-related challenges and failed to disclose the true extent of these challenges' negative impacts on its business [3]. - Specific issues cited include competitive and pricing pressures, weakening global sales and demand, and oversupply in global markets [3]. Market Reactions and Financial Performance - On June 23, 2025, BMO Capital downgraded Dow's stock rating from "Market Perform" to "Underperform," reducing the price target from $29.00 to $22.00, which led to a more than 3% drop in Dow's stock price [4]. - Dow reported a Q2 2025 non-GAAP loss per share of $0.42, significantly worse than the expected loss of $0.17 to $0.18 per share, with net sales of $10.1 billion reflecting a 7.3% year-over-year decline [5]. - The disappointing results were attributed to a challenging earnings environment and trade uncertainties, leading to a dividend cut from $0.70 to $0.35 per share, which caused Dow's stock price to decline by over 17% [5].

Core Viewpoint - A securities class action lawsuit has been filed against Dow Inc. for allegedly making false and misleading statements regarding its financial condition and ability to manage macroeconomic challenges [1][2]. Group 1: Allegations of Misleading Statements - The lawsuit claims that Dow overstated its ability to handle macroeconomic and tariff-related challenges, as well as its financial flexibility to support dividends [2]. - It is alleged that the negative impacts of competitive pressures, softening global sales, and product oversupply on Dow's business were understated [2]. - The complaint asserts that the public statements made by Dow were materially false and misleading throughout the class period [2]. Group 2: Stock Performance and Analyst Downgrade - On June 23, 2025, BMO Capital downgraded Dow's stock from "Market Perform" to "Underperform" and reduced its price target from $29.00 to $22.00 per share due to ongoing weakness in key markets and pressure on dividends [3]. - Following this downgrade, Dow's stock price fell by $0.89, or 3.21%, closing at $26.87 per share on the same day [3]. Group 3: Legal Proceedings - Investors who acquired shares of Dow during the class period are encouraged to contact the law firm before the lead plaintiff motion deadline on October 28, 2025 [4].

Core Viewpoint - A class action lawsuit has been filed against Dow Inc. and certain officers for alleged violations of federal securities laws during the specified Class Period [1][2]. Group 1: Class Definition - The lawsuit seeks to recover damages for all individuals and entities that purchased or acquired Dow securities between January 30, 2025, and July 23, 2025 [2]. Group 2: Case Details - The complaint alleges that Dow's management made materially false and misleading statements regarding the company's business and financial condition [3]. - Specific allegations include overstating Dow's ability to handle macroeconomic and tariff-related challenges, underestimating the negative impacts of competitive pressures, and failing to disclose the oversupply of products in global markets [3]. Group 3: Next Steps - Investors who suffered losses in Dow have until October 28, 2025, to request to be appointed as lead plaintiff in the case [4].

Group 1 - Dow Inc. is a $17.5 billion chemicals company facing challenges due to declining chemical prices [2] - The company is actively working to right-size its portfolio and improve its financial positioning [2] - The Value Portfolio focuses on building retirement portfolios using a fact-based research strategy, which includes analyzing 10Ks, analyst commentary, market reports, and investor presentations [2]

Core Insights - Dow has received an additional $540 million from Macquarie Asset Management's increased investment in Diamond Infrastructure Solutions, raising its stake from 40% to 49%, bringing total proceeds from the transaction to approximately $3 billion [1][7]. Group 1: Partnership and Investment - The expanded partnership with Macquarie Asset Management indicates strong trust and alignment, leading to a long-term, value-driven collaboration [2]. - Dow and Macquarie Asset Management will enhance the growth of Diamond Infrastructure Solutions, providing services across various sectors, including energy, environment, infrastructure, and pipelines, to over 70 existing and new customers [3]. Group 2: Recent Developments - In May 2025, Diamond announced a partnership with Again, a Danish climate tech startup, to establish the first U.S.-based CO₂ transformation facility at its Texas City site [4]. - Diamond and Third Pillar Solar have agreed for exclusive access to Diamond's Texas reservoir system to explore the potential deployment of up to 500MW of floating solar [4]. Group 3: Company Overview - Dow is a leading materials science company with a focus on high-growth markets such as packaging, infrastructure, mobility, and consumer applications, achieving sales of approximately $43 billion in 2024 [5].

Core Viewpoint - The Dow class action lawsuit alleges that Dow Inc. and its executives made misleading statements regarding the company's financial health and ability to manage macroeconomic challenges, leading to significant losses for investors during the specified class period [1][3]. Group 1: Lawsuit Details - The class action lawsuit seeks to represent purchasers of Dow Inc. securities from January 30, 2025, to July 23, 2025 [1]. - The lawsuit is captioned Sarti v. Dow Inc., No. 25-cv-12744 (E.D. Mich.) and charges Dow and its executives with violations of the Securities Exchange Act of 1934 [1][3]. Group 2: Allegations Against Dow - The lawsuit claims that Dow overstated its ability to mitigate macroeconomic and tariff-related challenges, as well as its financial flexibility to support dividends [3]. - It is alleged that Dow failed to disclose the true impact of competitive pressures, softening global sales, and product oversupply on its business [3]. - Following a downgrade by BMO Capital on June 23, 2025, Dow's stock price fell by over 3% [4]. Group 3: Financial Performance - On July 24, 2025, Dow reported a non-GAAP loss per share of $0.42, significantly worse than the expected loss of approximately $0.17 to $0.18 per share, with net sales of $10.1 billion, a 7.3% year-over-year decline [5]. - Dow's CEO attributed the disappointing results to a challenging earnings environment and announced a dividend cut from $0.70 to $0.35 per share, leading to a stock price drop of over 17% [5]. Group 4: Legal Process - The Private Securities Litigation Reform Act of 1995 allows any investor who purchased Dow securities during the class period to seek appointment as lead plaintiff in the lawsuit [6]. - The lead plaintiff represents the interests of all class members and can select a law firm to litigate the case [6]. Group 5: Law Firm Background - Robbins Geller Rudman & Dowd LLP is a leading law firm in securities fraud and shareholder litigation, having recovered over $2.5 billion for investors in 2024 alone [7][8]. - The firm has been ranked 1 in securing monetary relief for investors in securities class action cases for four out of the last five years [7].

Group 1 - The article discusses the rising valuations in the market and highlights the quality factor as a focus for investors with lower risk appetites, particularly those with contrarian views on high-performing sectors like technology and AI capital expenditures [1] - Vasily Zyryanov, an individual investor, emphasizes the importance of identifying underpriced equities with strong upside potential and overappreciated companies with inflated valuations, particularly in the energy sector, including oil and gas supermajors and exploration companies [1] - Zyryanov advocates for a comprehensive analysis that includes Free Cash Flow and Return on Capital, suggesting that these metrics provide deeper insights beyond simple profit and sales analysis [1] Group 2 - The article acknowledges that while some growth stocks may warrant their premium valuations, it is crucial for investors to investigate whether the market's current opinions are justified [1]

Group 1 - The article discusses the investment strategies of Vasily Zyryanov, focusing on identifying underpriced equities with strong upside potential and overappreciated companies with inflated valuations [1] - Zyryanov emphasizes the importance of analyzing Free Cash Flow and Return on Capital in addition to profit and sales to gain deeper insights into investment opportunities [1] - The research covers a wide range of industries, particularly the energy sector, including oil & gas supermajors, mid-cap, and small-cap exploration & production companies, as well as oilfield services firms [1] Group 2 - The article highlights that while Zyryanov favors underappreciated and misunderstood equities, he also recognizes that some growth stocks may warrant their premium valuations [1] - The primary goal for investors is to investigate whether the market's current opinions on valuations are accurate [1]

Core Viewpoint - The Dow class action lawsuit alleges that Dow Inc. and its executives made misleading statements regarding the company's financial health and ability to manage macroeconomic challenges, leading to significant losses for investors during the specified class period [1][3]. Group 1: Lawsuit Details - The class action lawsuit seeks to represent purchasers of Dow Inc. securities from January 30, 2025, to July 23, 2025 [1]. - The lawsuit is filed against Dow, its subsidiary, and certain top executives for violations of the Securities Exchange Act of 1934 [1][3]. - Allegations include overstating Dow's ability to mitigate macroeconomic and tariff-related challenges and understating the negative impacts on its business [3]. Group 2: Financial Performance and Market Reaction - On June 23, 2025, BMO Capital downgraded Dow's stock from "Market Perform" to "Underperform," reducing the price target from $29.00 to $22.00, citing weakness in key markets [4]. - Following this downgrade, Dow's stock price fell by over 3% [4]. - On July 24, 2025, Dow reported a non-GAAP loss per share of $0.42, significantly worse than the expected loss of approximately $0.17 to $0.18, with net sales of $10.1 billion, a 7.3% year-over-year decline [5]. - Dow's CEO attributed the disappointing results to a challenging earnings environment and announced a dividend cut from $0.70 to $0.35 per share, leading to a stock price drop of over 17% [5].