DuPont (DD) Chair and CEO Ellen Kullman set up investor expectations until 2015 when she promised Topline growth of 7% and EPS growth of 12%. That of course is classic operation’s leverage as described in most biz schools in one of their introductory courses.
The stock sits at its 52 week high and management needs a way for it to break out. Ellen Kullman was of course speaking at the Bank of America Merrill Lynch Global Industries Conference. The devil will be in the details and every investor call will now listened to in this context.
She has positioned the company as a science-based products and services company. The question becomes is this an industrial company or a high-tech enterprise commanding higher multiples. No discussion or comment about markets. Just a focus on products. I always get worried when the inventors speak to the product and not the solution.
Disclosure: George Gutowski writes from a caveat emptor perspective. I hold no positions in stocks mentioned in this post.