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The slide in DuPont (DD -9%) shares wipes away all their 2012 gains following the weak Q3...

The slide in DuPont (DD -9%) shares wipes away all their 2012 gains following the weak Q3 earnings report. But DD says it remains on track to achieve its full-year 2012 productivity targets for both fixed costs and working capital, and it is "taking the necessary steps" to move long-term into higher growth, higher margin businesses such as agriculture, nutrition and biotech. Also: DOW -3.1%, MON -1.8%.
Comments (1)
  • mikeurl
    , contributor
    Comments (422) | Send Message
     
    I hadn't noticed how much trouble DD is in. i haven't held the stock in a long time.

     

    But today I took a look. At least on a GAAP basis, negative free cash flow of 780 million 9 months ending in 2011. And there is 1.6 billion in negative FCF so far 9 months ending 2012. That's awful. They are making up the difference in net borrowing. And they only have a cash cushion of about 3.5 billion.

     

    They are dangerously close to being in trouble. At a minimum the dividend is at risk here. There is no free cash flow at all on a GAAP basis, in fact it is massively negative.
    23 Oct 2012, 05:04 PM Reply Like
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