Few CEOs escape Cramer’s Wall of Shame in the most honorable way: by improving their performance. Usually the board of directors gives them the boot, and they fade into obscurity much to shareholders delight.
But not so with Dow Chemicals’ Andrew Liveris, who Cramer added to the Wall on Jan. 27. After overpaying for specialty-chemical maker Rohm & Haas, lousing up a potential $9.5 billion joint venture with Kuwait and cutting the company’s dividend, this CEO seems to be doing everything possible to redeem himself.
Dow’s cash balance is up to $3 billion thanks to Liveris’ efforts, and the company should generate $1 billion of free cash flow over the next 12 months. He has also identified $1.3 billion in synergies and cost reductions related to the Rohm & Haas deal. And, to top it off, talks with Kuwait are back on. It’s like Liveris is a completely different person these days.
“I like the new guy,” Cramer said.
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