Dow (DOW), DuPont, and Corteva will soon all be competing for investor dollars. In this segment of Industry Focus: Energy, Motley Fool's Nick Sciple and Fool.com contributor Lou Whiteman reveal which of the three units they will be watching closely as a potential addition to their portfolios.
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This video was recorded on April 11, 2019.
Nick Sciple: As you look at three companies, as they become available on the market, which one, if any, is most interesting to you as a potential investment?
Lou Whiteman: I've already exposed my crush on Ed Breen, [laughs] so I think that may be a hint to where I'm going. If you look at the new DuPont, the margins they're able to generate, the exposure to different businesses that hopefully can make it less cyclical, or less tied to one industry and the ups and downs of construction, say. I like that profile. I like that portfolio. And I really like the jockey. I did. I'm always reluctant to buy a company just on the CEO, and especially this, this is going to be a chairman now. Breen is going to be sort of just the wise man whispering over the shoulder. But I really have faith that there are things to do, and that he's the right person to extract value in that business.
Again, as you say, it's going to be later in the year because I want to see how it goes. But I'm going to be looking very closely at DuPont. I would like to own that business, I think.
Sciple: Yeah, I tend to agree with you, Lou. It's got the fatter margins, it has the management that has the track record of being successful, has the potential for additional split-offs that could create more value for us. That's the one I'm going to look at.
But I think all these, even if they're not something you want to invest in, they're going to give all investors a good look-through into how the economy is moving from a cyclical point of view, because they just touch so many parts of the global macroeconomy. These are companies I'm probably going to be paying a little bit of attention to regardless of whether I invest in them.
