Daily Stock Opinions and Ratings

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Jim Cramer - Mad MoneyDowDuPont Inc.DWDPPARTIAL SELLOct 29, 2021

It reports Tuesday. He expects a weak quarter. Rising costs and the semiconductor shortage led him to take some profits.

Jim Cramer - Mad Money

Owned

Unlock Rating

$30.52

Stock price when the opinion was issued

$47.80

As of Jun 18, 2026. Market Open.

chemicals

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BUY

Sitting on a mountain of cash. Believes in the CEO who's made fortunes for investors in the past. He bet he can do it again.

SELL

They report Tuesday. He worries about rising raw costs in industrials, and this could lead to a downtime for Dow. This is why he recently sold it.

BUY ON WEAKNESS

A past pick from summer 2020 when we started turning the corner on the pandemic The good news has been baked in, so if this sells off another $5-10, he'd buy.

DON'T BUY

Coronavirus has hit this badly. Get rid of Dupont, keep Dow if you have a choice, but he wouldn't buy any chemical stocks now.

COMMENT

It is split up into Dow and Dupont again. Dupont is a petro-chemical company going through difficult times. DOW is a bit more specialized. It has a 5%+ dividend. They are both defensive stocks over 10 years.

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.

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.

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.

DON'T BUY

The chemical companies have not performed well, partly due to trade negotiations. We have seen a collapse. We have broken the support level and have just finished the seasonal period for material stocks including chemicals. This is not the time to own it.

DON'T BUY

It is a corporate restructuring story that he expects to see trade as three separate companies. The components have not benefited from improving fundamental factors. There will eventually be better value and may take three years to accomplish their goals. Basic materials may be getting its footing, but the other components are slow to come about right now. He would look elsewhere.

HOLD

They merged and then de-merged the companies in a different combination. The spin-out is still in the process of happening. Canadians will get taxed at 100% on the spin out company when they receive the shares. It is rather confusing.

COMMENT

Breaking up to try to create shareholder value. Caution to Canadian investors: these will be taxable dividends unless the company applies to the CRA to make it not so. Check with your financial adviser. Cheap multiple. Part of it has a good long upside, but the chemicals part is more cyclical. Likes it, worth looking at.

PAST TOP PICK

(A Top Pick Dec 07/17, Down 22%) Materials were down broadly. There is unquestionable value to be realized. Ultimately the input costs won and it has not performed as well as expected.

BUY ON WEAKNESS

Recent addition for him. Likes its underlying businesses. Its structure is causing uncertainty, but he sees this as an opportunity going forward. Will be more stalwart than tech stocks. It’s on sale, so an opportunity to add. Sit tight, good things to come with this company.

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