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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: patron_anejo_por_favor who wrote (218982)	9/5/2009 12:26:57 AM
From: Perspective	Read Replies (2) \| Respond to of 306849

I knew this kind of hit was out there, but for some reason hadn't tripped across it yet. Was reading Dupont's annual report, and noticed a real zinger. Shareholders equity dipped from 11B to 7B, and it wasn't immediately obvious why. Turns out it was almost entirely accounted for by the hit their pension plan assets took: yahoo.brand.edgar-online.com Scroll to the 2008 section. $4B loss on pension plan assets. Ouch. I'm assuming by this point that most analyst estimates are probably excessively optimistic. That makes me very skeptical that DD can support its $30 price tag for long. A multiple of 15 times projected earnings seems a little rich in the "new normal". I'm sure there is better low hanging fruit, but even the heavies look like they could really be in trouble if the double dip hits. `BC