I’m thinking of an investment in Eastman Chemical (EMN) and I was wondering if anyone else had a point of view on this company? They currently trade for about 9 times their 2011 earnings per share. Debt is approximately 45% of capital - a little higher than I’d like but still reasonable. Earnings have grown about 10%/year for the last 5 years but cash flow only about 3.5%/a year. I’d guess the rate of earnings growth will decline or the rate of cash flow growth will increase but I’m a little concerned about this. Return on Capital will be approximately 20% for 2011 while ROE will be about 30%. Dividend around 2.7% represents less than 30% of earnings. I’d love to hear what anyone else thinks about this possible investment.