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Is Dupont in for Another Pummeling Today?


Maybe -- but there could also be opportunity.

It was a busy but relaxing weekend. Of course on Friday there was Minyanville's Festivus, which was, in a word, awesome. And on Saturday and Sunday I took in a local indoor soccer game and did some Christmas shopping.

Asian stocks ended mixed. The Hang Seng was off 0.77% while the Nikkei rose 1.45%. European stocks, however, were in negative territory early this morning. And here in the US, we're currently trading higher.

Here's what I'm focused on this fine, very crisp Monday morning:

Dupont (DD):
Shares of the Delaware-based chemical company took a pummeling in Friday's session on some pretty hefty volume on the announcement of a pretty sizable delay in the release of a new seed technology.

1. I get the feeling it could have a tough go in today's session too, so I'm going to see how things shake out a bit before pulling the trigger. I also want to hear a little more about what this might mean, if anything, in terms of dollars and cents to the near-term bottom line because that wasn't crystal clear to me.

All that said, my eyes are peeled because the company has pretty consistently been blowing past Street expectations, has a sweet dividend (as I've pointed out in previous articles), and overall has some decent growth potential looking a few years out. In short, there could be some opportunity here.

By the way, per Justin Sharon, Credit Suisse lopped its rating on the shares.

On the flip side, Friday was a good day for the one-time high-flying Massachusetts-based company. Its shares rose on some nice volume and it's had a pretty nice run since around the beginning of fall.

The reason for the excitement in Friday's session: a couple of sweet analyst upgrades.

My thoughts:

1. I see some opportunity here. Certainly momentum seems to be in its favor, which is a biggie. It's also nice to see optimism from some high-profile analysts. But how much upside does it have from here?

2. With the company expected to put up $1.63 in 2010, how much more is the stock really worth at this point -- maybe a couple of bucks? So why pull the trigger now on the heels of this run up? I see other, better opportunities out there.

3. That said, a pullback to the lower $20s, and/or some upbeat management comments at year-end might put the company a little nearer to the top of my Christmas wish list, but for now, I'd rather take the wait-and-see approach.
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No positions in stocks mentioned.

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