Was Jim Cramer Right About These 11 Stocks?

4. DuPont de Nemours, Inc. (NYSE:DD)

Number of Hedge Fund Holders: 64

In an older segment, Cramer reacted to the announcement that DuPont de Nemours, Inc. (NYSE:DD) would split into three companies at the time. He was stunned the market didn’t react positively and gave his own view on it:

“Sometimes the market’s so wrong that it just takes your breath away. […] Ed Breen, the amazing CEO of DuPont, announced he’s splitting up the company into three separate companies so Wall Street will finally give these businesses the credit they’re worth. I figured the stock would open up four or five percent — and instead, it was down a dollar. […]

You’re getting a new DuPont that’s far less cyclical. It’s got health care, energy storage, safety and protection — all fantastic businesses. The breakup here is going to take 8 to 12 or even 24 months, but meanwhile, they can buy others, they can make a ton of money. […]

The water business is being valued at an incredibly low multiple versus comps like Xylem and Pentair. […] We come up with a sum-of-the-parts valuation of $100 for this $79 stock — and that’s conservative.

“Long story short: the market often makes mistakes — and ignoring the DuPont breakup is one for the books. […] What’s not to like? Let’s just say you have a chance to buy DuPont much, much lower than it deserves to be.”

Cramer misread the market’s reaction as DuPont slid 14.29% since the breakup announcement. DuPont de Nemours, Inc. (NYSE:DD) is undergoing a three-way breakup to unlock shareholder value across its electronics, water, and specialty materials divisions.