Looking for a good core holding that will give you dividends and growth? Jim Cramer thinks Dow Chemical is getting ready to roar and would be a sound portfolio addition.
Dow has been in self-help mode for a long time and finally got a face lift when it sold off assets to reposition its portfolio to have less commodity exposure and more exposure to margin specialty chemicals.
Yet, for some reason, the stock tends to decline when oil does, even though they should be benefiting from huge declines in oil and natural gas prices.
Cramer dug in deeper with the Chairman and CEO of Dow Chemical, Andrew Liveris to find out if the low prices of oil will continue to impact the repositioned version of Dow.
"The oil overhang is in our past. When we were a pure commodity company, there was a lot of view that commodity companies would go down in profits if oil prices dropped … Firstly, we are a very different type of company. Secondly, we have assets all around the world, like Europe, where a low oil price actually helps our margins. And thirdly, a low oil price is a massive discount to the world's economy. Like a tax break," said Liveris.