Just call Ashland a specialist at mixing things. Ashland (NYSE: ASH) makes specialty resins, polymers, and adhesives for sale in North America and Europe. It also owns the Valvoline oil brand and oil service chain, and the Zerex anti-freeze brand, among other business operations.

In Q1, Ashland exceeded the First Call EPS estimate, despite sluggish-to-poor demand conditions that saw volumes decline 10-40%. Further, the integration of acquired Hercules Inc. has gone well, with more than $60 million in operational savings registered as of the close of Q1. The First Call F2009 / F2010 EPS estimates for ASH are $1.52 / $1.95.

Market pullbacks and periods of protracted economic sluggishness are not the most tranquil circumstances, to say the least, but they do create value plays, and with the above in mind, Ashland is worth a review.

Ashland Inc. (NYSE: ASH) is a global, diversified chemical company that's involved in the plastic, resin/polymer, water treatment, and oil-change fields.

Analysts expect high-single-digit revenue growth for Ashland's water technology and Valvoline segments, but softer growth in performance materials and chemicals.

Further, a restructuring initiative is yielding cost reductions; margins remain adequate. Moreover, there is a sense that ASH's shares do not reflect the improving outlook in many of ASH's businesses, and ASH's p/e of 14 speaks to that undervaluation. The Reuters FY 2008/FY 2009 EPS consensus estimates for ASH are $3.19/$3.83.

The market's choppy / consolidating pattern continues as 2008 begins, so defensive stocks remain prudent plays, and among these, Dow Chemical is worth a review.

Dow Chemical (NYSE: DOW) is the No. 2 chemical company in the world and the largest in the United States. A leader in performance plastics, Dow's other products include polyethylene resins, fibers, films, and performance chemicals such as acrylic acid.

In general, analysts see a kaleidoscope of pricing conditions for Dow, but favorable industry revenue fundamentals on solid global economic growth: international sales account for more than 60% of revenue. Moreover, that patchwork of pricing conditions has prompted Wall Street to take a more-cautious stance with DOW, which has driven its P/E to about 12, but view that as getting DOW for a bargain price.

The risks? The standout risk with Dow concerns volatile costs for raw material. A substantial cost increase in this category could squeeze Dow's earnings results. The Reuters F2007/F2008 EPS consensus estimates for DOW are $3.71/$3.50.

The First Call mean rating for DOW is: Hold. [17 firms.] Mean 2008 target: $49.00 [high: $55, low: $43.]

Stock Analysis: Dow Chemical is a moderate-risk stock not suitable for low-risk investors. Investors with an investment horizon longer than two years should be rewarded from DOW's shares. Sell / Stop Loss if you were to purchase shares in this company: $27.

DISCLOSURE: Joseph Lazzaro has no positions in stocks. In addition to private real estate holdings, he owns corporate and municipal bonds, and cash certificates of deposit.

General Electric Co. (NYSE:GE) today reported first quarter results that matched Wall Street expectations. Investors pushed up the shares in pre-market trading.

Net income was $4.5 billion, or 44 cents per share, compared with $4.4 billion, or 42 cents, a year earlier. Revenue jumped 4 percent to $38.6 billion. Analysts expected profit of 44 cents on revenue of $39.8 billion, according to Thomson Financial.

GE's Infrastructure, Commercial Finance and Money units each posted double-digit revenue gains while GE Healthcare was little changed and NBC Universal and Industrial declined. All of the divisions showed gains in operating profit except Industrial.

Other highlights include a 32% gain in major equipment backlog, an 11% gain in services order and a 22% increase in financial services assets. Cash flow from operations rose 10 percent to $7.4 billion. The company was hurt by the meltdown in subprime mortgages at its WFC Mortgage business.

As expected, GE Infrastructure did well. Its revenue rose 18 percent to $11.9 billion, while operating jumped 28 percent to $2.2 billion. Revenue at Commercial Finance jumped 15% to $6.28 billion and 14 percent to $5.28 billion in GE Money. Commercial Finance profit rose 21 percent to $1.42 billion and GE Money profit gained 2 percent to $851 million.

Industrial revenue fell 9 percent to $7.4 billion and profit slumped 20 percent to $480 million. NBC Universal continued to lag with revenue plunging $3.48 billion as operating profit rose 6 percent to $691 million.

Investors, though, will reserve judgment on GE until this morning's earnings conference call.

I rattled some cages by pulling back the curtain on General Electric (NYSE: GE). I did that for good reason. The way I see it, there are going to be some significant readjustments in the markets starting early next year. The heady upward spiral we've been watching just can't go on forever. I'm sorry I have to make that call but that's the way I see it. Values have to equalize sometime. Overvaluations need to recede and correct. I'm thinking it's time now to pull some profit, take a stance, and brace yourself for a bit of a downward ride.

That's why I'm so high on GE. In my view there's no better place to shore up some funds. In fact, I have heard of GE as being referred to as a marvelous hedge of protection when times get volatile. It sure looks that way to me. In his recent statement to investors, GE chairman and CEO Jeff Immelt made his declaration of his company's strategic position clear and strong. Consistent growth, responsible investment, conservative diversification, and quality people, these are the things which Mr. Immelt banks on. This one handy quote from CEO Immelt puts GE's performance for 2006 into a nice sturdy package:

"The year is going to be a good year. Revenue will be $163 billion, up 10%. Earnings will be $20.5 billion, up 12%. Earnings per share up 15 or 16%. Cash flow at $25 billion, up 15%. Two point expansion and return on total capital and a pretty attractive segment profile. If you look across the company, really the only business that is turnaround mode is NBC Universal."

General Electric Company (NYSE: GE) has a webcast of the one hour long webcast done this morning at 8:30am. It covers GE's 3rd Quarter Financial Report and their 4th Quarter outlook. Here is a summary of the webcast.

Jeff Immelt comes on and reviews that it was a strong quarter for GE. Their environment is solid, global infrastructure spending is up, emerging market growth is strong, and the US consumer is strong. Inflation and interest rate are there, but are factored in. Plastics hasn't been able to offset inflation, however. GE is looking to improve on that next year. Again, the overall environment is very strong for GE.

There are five key performance metrics, and all of them show improvement and growth. Revenue was up, assets were up, earnings per share were up, return on capital was up, and margins were all up.

GE's long term strategy, Jeff Immelt reiterated, was to build great business. Infrastructure segment was up, NBC is rebounding, and Jeff expects NBC to show positive growth in the fourth quarter. Profit growth was up around the company, and NBC was mentioned again, this time pointing out that their primetime ratings were up 15%. Across GE orders were up 15%, organic growth is up for the 3rd quarter in a row, and service growth was up as well.

Growth is a big push inside the company, and GE has enjoyed seven quarters in a row of growth at 2-3X GDP thanks to technology and services. Aviation has a big backlog. The imagination breakthroughs are delivering growth and products. Global growth is up, and growth in developing countries is up 22%.

At this point Jeff Immelt hands off the webcast to Keith, who starts delving into the nitty gritty.

GE ended the day down 3 cents at $32.65. Not much of a movement for the large corporation. Today saw GE adding two new resins to its plastics division.

In order to beef up its plastics appeal, a division that GE is struggling with according to the last earnings report they gave, this new resin was developed as part of its ecomagination initiative. The resins are made from 85% recycled plastic waste and don't release as much carbon dioxide into the air as they are being manufactured.

It's interesting to see how deep GE's ecomagination initiative goes, all the way down to building materials. One hopes GE's marketing these materials in a more eco-conscious age can give the plastics division a bit of an edge, although it is still easier to point to a wind turbine and say ecomagination than it does to a resin.