Opinions
John Petrides
DowDuPont Inc.
DWDP-N
COMMENT
Oct 24, 2017
$71.860
Stock price when the opinion was issued
chemicals
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COMMENT
Spin offs? The agra-chemicals business that will be spun off is not a holding he would buy into. There is uncertainty over genetic modification in the agricultural space, but he bought this in the past for the chemical side of the business. Dupont will target the chemical side and is expected to pay a 5% dividend yield.
chemicals
HOLD
It split into three shares. DWDP-N was a holding company and he would continue to hold it. The AG company would be more challenged.
chemicals
DON'T BUY
When they split up the company, they bundled parts of the company he likes with parts he doesn't. Specifically, he doesn't want to be involved in the agricultural parts. The plastics part claims to be capturing content in automotive--but cars are a shrinking industry. If there are further splits, he'll take another look.
chemicals
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One of the largest mergers in the chemical industry, which can result in a large amount of cost cutting and synergies. They’ve outlined about $3 billion in synergies. In about 18 months they are going to break off into 3 different divisions, chemicals, agriculture as well as a 3rd component. There is potential here for a tremendous success.