DowDuPont Inc. (DWDP)

There is significant upside on this. They will be splitting into several units over the next few years for massive cost savings. Has a huge market share in a number of growing markets, including agriculture, specialty chemicals, etc.

Chart shows the stock is just going horizontally in a range, not going anywhere. There are better things to do than sitting here. Looks like dead money.

The scenario is playing out, the merger is complete and they are working toward spinning out these 3 different businesses. The economy continues to get better, so pricing is good. Feedstock costs are low. This can go on for a long time. The dividend will grow. Dividend yield of 2.2%. (Analysts’ price target is $80.)

A lot of the bigger US companies are reflecting a fair bit of good news. This merger entity is a really great company, and over time you will make money with it. He would hold off and wait for a correction. The stock is not cheap.

On her watch list. The investment thesis is that eventually they plan to spin out various operating divisions. The hope is that the sum of the parts is greater than the total. A cyclical name, so in an environment where you are seeing improving economic fundamentals, that is a positive. Has done relatively well and the pullback was maybe just for valuation measures.

The synergies out of this merger could be conservative as a $3 billion target. This is not a simple story. These are 2 dominant companies that are being pieced together, which makes a lot of sense. You have synergies, base metals have performed well and chemical names will benefit from strong industrial growth. Dividend yield of 2.2%. (Analysts' price target is $80.00.)

This is now run by the same guy that was a CEO in the breakup of Tyco. He did a great job, so expectations are high. Studies show that companies that are spun off, typically do well. He would wait, because these companies are going to spend money, so the upfront pain is going to be in the first half of the year, and numbers are not going to look that good. Sometime, during that first year, he is going to look to Buy some of this.

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 3^rd component. There is potential here for a tremendous success.

The merger between Dow and DuPont offers real cost synergies. Eventually this will be broken up into 3 companies, a specialty and agricultural company’s couples company and a materials company. When we get our breakup value of the stock and take out the cost synergies, he gets a valuation that the stock should be double where it is in the next 5 years. A very, very undervalued company. They are #1 in most of their major businesses. Plenty of free cash flow and lots of room for dividend increases in all 3 of the businesses. (Analysts’ price target is $79.)

The largest chemical company in the world. They may break up into three to unearth more value. They are completely attached to the global economy. There are billions in savings they can generate in the next couple of years to generate a much better return on their assets. It just continues to unfold. (Analysts’ target: $79.00).