Morgan Stanley downgrades commodity chemical stocks. (News).(Morgan Stanley and Company Inc. downgrades rating of a number of chemical companies)(Brief Article)

Chemical Market Reporter, September, 2002

GIVING A SHOCK to commodity chemical stock prices, Morgan Stanley analyst Les Ravitz has downgraded four chemical companies based on valuation, litigation concerns and weakening fundamentals in certain markets. The analyst downgraded Eastman Chemical Company and Solutia Inc. from "overweight" to "equal-weight," and Georgia Gulf Corp. and Wellman Inc. from "equal-weight" to "underweight."

Shares of most of the companies were off sharply last Wednesday on the downgrades: Georgia Gulf down $2.95 (11.4 percent) to $22.92, Eastman down $1.04 (2.4 percent) to $41.70 and Wellman down 79 cents (5.3 percent) to S14.20. Solutia bucked the trend, rising 30 cents (4.9 percent) to $6.46.

While Mr. Ravitz believes Eastman has a good turnaround story and...

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