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Barron's: DuPont should beat low expectations thanks to growing ag business

  • The market seems to view DuPont (DD +1.3%) as a stodgy chemical company, but it is one of the world's biggest sellers of seeds, pesticides, fertilizers and other crop protection products; a Barron's profile says shares could climb 20% as investors start to give DuPont credit for those businesses.
  • DuPont delivered better than expected Q4 earnings last week, helped by fast-growing sales in its agriculture division; the unit contributed ~40% of 2013 operating profit and is DD's fastest-growing business, with sales that could rise at a double-digit rate during the next few years.
  • Compared with companies focused on agriculture chemical products, DD has been trading at a discount, at 14.2x estimated 2014 earnings; investors pay 19x-20x estimated earnings for Monsanto (MON) and Potash (POT).
Comments (2)
  • funfun
    , contributor
    Comments (1601) | Send Message
     
    In DuPont's case, appearance can be deceiving. For example, $100 million in seed sales were pulled forward into Q4 2013 from Q1 2014. Moreover, the charges from delivering the most costly, largest new product failure and ensuing environmental disaster in 21st century corporate America continue to burgeon. Charges for DuPont Imprelis, a falsely, if not fraudulently marketed "eco-safe" lawn herbicide turned efficient killer of mature landscaping trees countrywide were circa $200 million in Q4 alone. To date, the tab for this incompetently developed and delivered DuPont AG "innovation" has hit $1.2 billion.

     

    There are many compelling reasons, investors value Monsanto with about the same market cap as the much larger DuPont conglomerate, seeds, crop protection, nutrition, chemicals, plastics, refrigerants, Teflon, solar and building materials, biofuels, Kevlar, undsoweiter

     

    …funfun..
    6 Feb, 11:07 PM Reply Like
  • funfun
    , contributor
    Comments (1601) | Send Message
     
    Frankly and personally, folks, we believe after the colossal incompetence exhibited so lucidly by DuPont Imprelis, and earlier, by the failure to develop and commercialize the genetically engineered seed trait, DuPont OptimumGAP, DuPont lacks the intellectual capital to compete effectively or catch up with world leaders, Monsanto, BASF, Syngenta, and Novozymes. …funfun..
    8 Feb, 12:35 PM Reply Like
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