DuPont de Nemours In (DD)

[Danl]

LIttle things that make me go hmmmm...

I remember how Dow offered up Olin..Trade your Dow shares for as many Olin as you wanted for $18-$19..

Thinking they’ll apply same process to DWDP, but..instead, they are breaking it up, in pieces, over time..Could go a number of ways..

One way, is declare the 1st split, Dow, same way.., but if DWDP is at $65, and they declare a price of Dow at $45 to shareholders...That’s far different than if DWDP is at $85ish; same thing if Dupont follows suit with DD & Ag.. Arguably, DP could price itself at $45...and Ag. $35... Shareholder doesn’t come out so well, in those scenarios. Fact is he is sucking hind something...Price of DWDP winds up at $125, but the current shareholders pay for it the whole way...Since they originally owned it at today’s price $68.

Could be why price is down.. Smarter heads see it?

Just pondering..

[Mr B]

Need some news to get this moving... Timeline on the split, etc.

[Danl]

About $10-11 Billion overseas?

https://www.bloomberg.com/graphics/2017-overseas-profits/

[benfrankledger]

Goldman says DWDP's transformation from a large conglomerate to a group of more narrowly focused and streamlined businesses creates an appealing investment because of cost-cutting opportunities and the more narrowly focused businesses will have more strategic optionality.

[benfrankledger]

DowDuPont (DWDP -0.2%) is reinstated with a Buy rating and 12-month price target of $91 at Goldman Sachs, which the firm says "offers one of the strongest self-help stories in the chemicals segment by transforming from a massive conglomerate to a group of more narrowly focused individual companies."

[Danl]

Agree with this writer...

https://seekingalpha.com/article/4129678-dowdupont-significant-asymmetrical-risk-reward-opportunity

Maybe even $135

[Eagle1]

Agree Striker! Looking for much higher here.

[Striker77]

Taking a strong position here the next few days. Way undervalued and signaling for a steady increase throughout 2018.

[Eagle1]

DWDP divy .38

[Danl]

Glover Parks Group to handle Special Materials ...

http://www.odwyerpr.com/story/public/9631/2017-10-26/dowdupont-parks-specialty-group-at-glover.html

[Danl]

New Barron’s article:

http://www.barrons.com/articles/dowdupont-buy-it-ahead-of-the-breakup-1508554090

[Danl]

Per Loeb/Third Point today:

DowDuPont carries an unlevered balance sheet and retains significant M&A optionality. Yet, DowDuPont trades at just 8.6x consensus EBITDA in 2019, a substantial discount to its sum-of-the-parts when we look at the multiples of the likely comparables for the three (or more) Spin-Cos. As a result, we continue to see significant upside to our investment in DowDuPont.

Y’all can do your own math about where we are going...

[Danl]

I would think...

Ex-Dividend day should be about Oct. 27th..

http://m.nasdaq.com/symbol/dwdp/dividend-history

But the usually announce dividend value, before that too...

I have not seen either yet.

[Eagle1]

When do you think?

[Danl]

Should be getting a divy announcement soon...

Should go up, I would think... .56-.58?

[02opida]

must agree ~ owned DD since 71

[Eagle1]

Solid investment here! DWDP


AIMHO

[02opida]

71

[02opida]

sounds good

[Eagle1]

This DWDP correction should be short. Next leg up to the mid $70.00s+ once macd crosses back Bullish.

[02opida]

agree

DWDP

[02opida]

good post Danl

[Eagle1]

Interesting! DWDP on the rise! Next quarterly report should be exciting!

[Danl]

Interesting analysis:

"Extreme optimism for DWDP, as market analysts projected an outstanding earnings growth rate of 248.57% for the stock, supported by an equally strong sales growth of 59.88%. An affirming signal is when net income increase is supported by top-line growth. Since net income isn’t artificially inflated by one-off initiatives such as cost-cutting, we know this profit growth is more likely to be sustainable. This prospective profitability should trickle down to shareholders, with analysts expecting the company to generate a high double-digit return on equity of 22.86%. DWDP ticks the boxes for high-growth generation on all levels of line items, which makes it an appealing stock to dig into deeper. Thinking of investing in DWDP? Have a browse through its key fundamentals here."

[Danl]

I do chuckle at a $70 share price....

Pre-Merge, Dow (including old Dow/Corning) was $65...and it merged with $85 DD..

Now we are at $70?

Considering the 3 new companies coming out, who thinks they are worth $25,$25, and $20 now? Or $30, $30, and $10?

My guess is, after the split, you are looking more at $45, $45, and $35... but that's just me... and, Breen could well spin off a few others yet!

Market has some catching up to do...

[Eagle1]

News from Dow Dupont! http://crweworld.com/article/news-provided-by-business-wire/142060/dow-announces-start-up-of-world-scale-ethylene-production-facility-and-elite-polyethylene-unit-in-texas

[02opida]

Investors should buy DowDuPont shares because its cash earnings will surge in the coming years after the company completes its restructuring, according to JPMorgan, which initiated coverage on the chemical giant with an overweight rating.
After Dow Chemical and DuPont completed their mega-merger in August the new "DowDuPont now takes its place as the largest chemical company in the world … Free cash flow generation should step up sharply in 2019 and 2020 with the restructuring effort complete," analyst Jeffrey Zekauskas wrote in a note to clients Friday

[Danl]

From JP Morgan...

Investors should buy DowDuPont shares because its cash earnings will surge in the coming years after the company completes its restructuring, according to JPMorgan, which initiated coverage on the chemical giant with an overweight rating.
After Dow Chemical and DuPont completed their mega-merger in August the new "DowDuPont now takes its place as the largest chemical company in the world … Free cash flow generation should step up sharply in 2019 and 2020 with the restructuring effort complete," analyst Jeffrey Zekauskas wrote in a note to clients Friday.

[Danl]

What the future may hold... from Zacks.

"DowDuPont still intends to split into agriculture, specialty product, and material science companies. The specialty product company, with 2016 pro forma revenue of around $20 billion, will comprise four divisions of similar revenue: electronic and imaging, transportation and advanced polymers, safety and construction, and nutrition and biosciences. Given that these four segments are distinct businesses that will be operated separately, we would not be surprised if the specialty product company split into four separate companies at some point. We note that each of the four businesses will generate similar revenue as previous divestitures such as Axalta and Chemurs."

@$125 value...AND THATS JUST 1 OF THE 3 DIVISIONS...

[Eagle1]

JPMorgan Starts DowDuPont (DWDP) at Overweight

September 15, 2017 1:18 AM

JPMorgan initiates coverage on DowDuPont (NYSE: DWDP) with a Overweight rating and a price target of $80.00.Analyst ...

(Premium-only article. Please sign in or upgrade to SI Premium to view.)

https://www.streetinsider.com/dr/news.php?id=13299023

[Eagle1]

Hello I'm here:). Nice action here!

[Danl]

Greetings! And welcome to the new DowDupont!