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Strategies & Market Trends : Value Investing

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To: Spekulatius who wrote (61921)5/21/2019 8:41:16 AM
From: E_K_S  Read Replies (1) of 78744
 
DowDuPont (NYSE: DWDP) +1.3% pre-market as DuPont discloses plans to launch a $2B stock repurchase program shortly after its transition to an independent company upon separation of its specialty products and agriculture businesses effective June 1.

In a presentation today, future DuPont chairman-elect Ed Breen will reaffirm Specialty Products Division financial guidance of a low-single digits decline for organic net sales and adjusted operating EBITDA for Q2 and 2%-3% organic top line growth and 3%-5% growth for adjusted operating EBITDA for the full year.

DWDP shares have slumped 17% through last week since the company reported earnings on May 2, far more than the 2% drop in the Dow over the same period.

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Have this one on my watch list. Going to be hard to buy this at a lower bargain price. Will wait for the spin off now and see if I can start a small position after June 1. Based on the current combined valuation, their Ag business may/could be at a fair /value price (below 10 PE) but will need to see if the market bids that higher on the spin off.

EKS
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