Over the last few days, shares of DuPont (DD) have popped about 15% on news of the CEO departure. But unless there’s a significant change – and upside – in the commodities sector, I see very little to get excited about with this stock.
Plus, the company just cut is profit outlook again admitting it now expects operating EPS of $2.75 as compared to previous guidance of $3.10. In July, it cut its outlook to $3.10 from $4.
Sorry, but that’s not worth 15% upside. The company can change CEOs all it wants, but I see no reason to get excited about this stock. It’s oversold technically, as it over-extends on MACD and RSI.
Consider buying to open the DD November 2015 55 put up to $2.50 tomorrow morning.
Ian L. Cooper
Forgotten Profits