You must be a glass quarter full type guy. Having a higher yield on a reduced dividend because share price continues to fall is definitely not 'good news'.
Thanks for the reply. My number for the Pioneer acquisition came from adding up the purchase related costs over three annual reports and is different from what DuPont now officially reports. The write-offs were related to abandoned research and excess goodwill and indicated Chad had a poor idea of what he was buying. DuPont was sued post-purchase by ex-Pioneer managers and paid out another sizeable chunk of money. It was not a pretty acquisition.
As you say, Ag’s value based on prior earnings might be over $20B. But I’m guessing the impact of their current gene position and lackluster product line drives that value down. Ag represented 22% of DuPont’s sales with a large loss in the third quarter, and represented 42% of sales and 46% of revenue YTD third quarter. With $3 in earnings and at a P/E of 15, DD should be a $45 stock. Assuming Ag is 40% of sales and revenue and with 875M total DD shares outstanding, Ag’s true ‘stock market’ value appears to be around $16B. I don’t know why anyone would pay a premium.
Your comment about DuPont finding a business they can manage in today's economy seems to get to the heart of the matter. Again, thanks for the reply.
on what's holding DD's price up? It sure isn't earnings, and I don't see how a Syngenta deal will translate to a higher price. DuPont bought Pioneer for a little over $12B and immediately wrote off half of it. Their ag business is probably not worth $20B now. It's hard to justify anything over $45/share. Another Chemours type spinoff will just generate another Chapter 11 candidate. So why is it in the upper $60s?
Well stated. Combine all that with a very low growth rate, and there doesn't appear to be much here. Sad to see what's left of the 'traditional' DuPont in this condition.
I noticed the 'change' value seemed wrong all day, but the chart and historical price list look okay. I don't know what caused the problem. No buyout in sight as far as I know.
With AF currently at 16, it looks like the expectation is NYCB will fall to 15.50 or less. Will have to wash out profit takers before a bottom can form.
I've never had a post deleted on Yahoo until I recently posted a statement on this site about how a stool test should help screening people who are reluctant to have a colonoscopy and wondered if that was considered in the USPSTF evaluation. My brother-in-law finally had a colonoscopy only after he had obvious problems with stage 3 cancer and lived less than two years. He would have benefited from an earlier stool sample test. I can see the shorts are pounding this site, but it's strange Yahoo preferentially deletes pro-long posts. I've never seen that before.
Nice summary. I was a mid level operations manager for many years. Although I generally supported corporate diversity issues, I continually felt I was working in the middle of a PC mine field. One even perceived 'people issue' would negate a lot of success in safety, quality, production, and cost reduction.
You’re probably right, but the early September buying looks like a coordinated effort by senior management to show confidence in the stock and counter the shorts. Since their future is tied so directly to the company, they may be willing to take on more risk with the stock than the average investor. And although I don’t think bankruptcy is a current issue, I also don’t think this buying is any indicator of probability.
This is my buy point as well. I've started slow since I'm guessing it will trend down a bit from here. This may be a long term hold before active rig count recovers. Sure hope they are able to maintain the dividend, but I doubt it.