Opinions
Lorne Steinberg
DowDuPont Inc.
DWDP-N
PAST TOP PICK
Sep 04, 2018
$69.720
Stock price when the opinion was issued
chemicals
It's the ideal tool to help you make quicker, more informed decisions for
managing and tracking your investments.
You might be interested:
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
A Top Pick October 23, 2017. Down 9%). The merger has gone through. The company will be split into several pieces over the next 24 months. Free cash flow and earnings are growing at 10 to 15%. He expects dividend increases while the company goes through its restructuring. The breakup value of the company would give a 25% gain and the company has stated that it is headed in that direction. The company has been under pressure on the commodity chemical side and the agriculture side. There had been disappointment, though recent earnings were strong and caused a bit of a recovery. In addition, institutional investors are shying away from the company because, in general, they are shying away from owning conglomerates.