1 / 18

Finance & Investment Club

Finance & Investment Club . Team: Value-Seekers. DuPont The miracles of science. Team Components: Fund Manager: Charles Chen Senior Analyst: Christina Lam Senior Analyst: David Do. Basic Information. Ticker: DD Exchange: NYSE Industry: Chemicals – Major Diversified

abra
Download Presentation

Finance & Investment Club

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Finance & Investment Club Team: Value-Seekers

  2. DuPont The miracles of science • Team Components: • Fund Manager: Charles Chen • Senior Analyst: Christina Lam • Senior Analyst: David Do

  3. Basic Information • Ticker: DD • Exchange: NYSE • Industry: Chemicals – Major Diversified • Sector: Basic Materials • 52-week High: $53.35 (7/18/2007) • 52-week Low: $42.58 (12/19/2007) • Current Price: $48.95 (5/20/2007) • Dividend Yield: 3.3%

  4. Corporate Information • du Ponts family founded the company on July 19, 1802 • Company focuses on innovation • 34,000 patents and intellectual property • More than 25 awards since 2002 • Major Products: • Nylon • Kevlar • Teflon • Currently, focused on producing • 1) better seeds • 2) better machines that measure food quality

  5. 5 Markets of Concentration • Agriculture & Nutrition • Coatings & Color Technologies • Electronic & Communication Technologies • Performance Materials • Safety & Protection • Pharmaceuticals

  6. Agriculture & Nutrition • $6.8 billion in sales for 2007 • 13.15 EBT Margin • Subsidiary: • Pioneer Hi-Bred International: seed technology • Hybrid seed corn and soybean seed • Expect high growth

  7. Coatings & Color Technologies • $6.6 billion in sales in 2007 • EBT Margin: 12.73% • Titanium tetrachloride business has moved from startup to growth stage • Modest growth • Emerging market growth • Pricing conditions • Competitive environment

  8. Electronic & Communication Technologies • 3.8 billion in sales for 2007 • EBT Margin: 15.63% • Products range from organic circuit materials to products for advanced displays • Moderate Growth • PFOA (Perflorooctanoic acid) might be carcinogenic

  9. Performance Materials • $6.6 billion in sales for 2007 • EBT Margin: 9.48% • Products used in electrical, electronics, packaging, construction and consumer durable goods markets • Sluggish Growth • Weak North American market • Reduction of fixed costs

  10. Safety & Protection • $5.6billion in sales for 2007 • EBT Margin: 21.41% • Provide solutions to make life safer, healthier, and more secure • Kevlar • High Growth • Foreign markets

  11. Pharmaceuticals • EBT: 949million • Works closely with Merck to develop drugs • Cozaar and Hyzaar • Earnings decline • Patent terminations

  12. Management Outlook • Over 60% of sales were to customers outside of the US • Achieved 18% growth in the emerging markets of Europe, Asia Pacific, and Latin America • Optimistic: Revenue growth in emerging markets • Concerns: • Weak US housing • automotive markets • Rising energy prices

  13. Technical Analysis Confirmation? Uptrend Neckline

  14. Financial Analysis

  15. Industry Performance

  16. Competitors Analysis

  17. Competitors Analysis

  18. Recommendation • HOLD • The Bad: • Technical Analysis seem to imply a coming downtrend • Business is very susceptible to economic environment • Expiring patents • Possible lawsuits • The Good: • Very good fundamentals • Diversified business model

More Related